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NEGATIVE 
NO.  94-8201 2 


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Author: 


Wolfe,  Albert  Benedict 


Title: 


orks  committees  and 
Joint  industrial  councils 

Place: 

[Philadelphia] 

I    J  ^  Tfj 


919] 


'f^ -390 /?'■?. 


MASTER    NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
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Wolfe,  Albert  Benedict,  1876- 

Works  committees  and  Joint  industrial  councils.  A 
report  by  A.  B.  Wolfe.  United  States  shipping  board 
emergency  fleet  corporation,  Industrial  relations  division. 
Philadelphia,  January  1919.    [Philadelphia,  1919] 

254  p.    IZ'"^, 

Bibliography :  p.  248-254. 


1.  Arbitration,  Industrial.    2.  Factory  management, 
shipping  board  emergency  fleet  corpTJl-ation.    ii.  Title. 


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Works  Committees 


AND 


Joint  Industrial  Councils 


SCHOOL  OF  BUSINESS 

A  REPORT 

by 

A.  B.  WOLFE 


[/ 


UNITED  STATES  SHIPPING  BOARD 
EMERGENCY  FLEET  CORPORATION 
INDUSTRIAL  RELATIONS  DIVISION 

PHILADELPHIA 

APRIL 
1919 


II I  i  > 


A 


SKQ^  whs: 

LIBRARY 


School  of  Business 


Works  Committees 


AND 


Joint  Industrial  Councils 


A  REPORT 

by 

A  B.  WOLFE 


SSHOOL  OF  BUSINESS 


UNITED  STATES  SHIPPING  BOARD 
EMERGENCY  FLEET  CORPORATION 
INDUSTRIAL  RELATIONS  DIVISION 


PHILADELPHIA 

APRIL 

1919 


■i^J^.  JS*»=  *  ■^"■-   >*s"i 


"-^^^^"^^S'SSI^i 


I  V  v^i^^^-^^C^p***^ 


U 


\f  /  f/  o.,„ 


THE  first  necessity  of  the  Industrial  situation  Is  greater 
efficiency  of  production.  In  order  to  meet  the  diffi- 
culties created  by  the  war,  to  make  good  the  losses 
of  capital,  and  to  raise  the  standard  of  living  amongst  the 
mass  of  our  people,  we  must  endeavor  to  increase  both  the 
volume  and  the  quality  of  output. 

In  order  that  this  result  may  be  obtained  without  detri- 
ment to  the  social  welfare  of  the  community,  It  must  be 
sought  for  rather  In  improved  organization  and  the  elimina- 
tion of  waste  and  friction,  than  in  adding  to  the  strain  on 
the  workers,  and  must  be  accompanied  by  a  change  of  atti- 
tude and  spirit  which  will  give  to  industry  a  worthier  and 
more  clearly  recognized  place  in  our  national  life. 

This  can  only  be  accomplished  if  the  sectional  treatment 
of  industrial  questions  is  replaced  by  the  active  co-operation 
of  labor,  management  and  capital  to  raise  the  general  level 
of  productive  capacity,  to  maintain  a  high  standard  of  work- 
manship,  and   to   improve   working   conditions. 

It  is  essential  to  the  securing  of  such  co-operation  that 
labor,  as  a  party  to  industry,  should  have  a  voice  in  matters 
directly  concerning  Its  special  Interests,  such  as  rates  of  pay 
and  conditions  of  employment.  It  is  necessary  to  create 
adequate  machinery,  both  for  securing  united  action  in  the 
pursuit  of  common  ends  and  for  the  equitable  adjustment 
of  points  which  involve  competing  Interests.  This  machinery 
must  be  sufficiently  powerful  to  enable  both  sides  to  accept 
its  decisions  with  confidence  that  any  agreement  arrived  at 
will   be  generally  observed. 

From  the  Memorandum  of  the  Garton  Foundation 


Vi= 


i 


\ 


M 


Preface  to  First  Edition 

If  the  war  had  continued  for  several  years,  its  continuance  would 
undoubtedly  have  l^een  attended  by  serious  strain  in  the  relationships 
between  employers  and  employees.  Having  in  mind  such  a  possibility, 
a  branch  of  the  Industrial  Relations  Division  was  organized  for  the 
purpose  of  analyzing  and  making  available  to  American  manufacturers 
both  English  and  American  experience  in  industrial  relations  under 
war-time  conditions. 

Many  lines  of  inquiry  were  started,  but  only  a  few  of  these 
inquiries  had  been  concluded  at  the  time  of  the  signing  of  the  armis-^ 
tice.  One  of  these  which  was  concluded  is  now  presented  as  a  report 
on  Works  Committees  and  Joint  Industrial  Councils.  It  has  seemed 
best  to  present  the  report  as. prepared  by  the  investigator  in  charge 
in  order  that  it  may  be  promptly  available. .  In  so  far  as  opinions  are 
expressed  in  the  report,  they  are  the  opinions  of  the  investigator,  unless 
otherwise  indicated.  The  United  States  Shipping  Board  Emergency 
Fleet  Corporation  assumes  no  responsibility  beyond  that  of  presenting 
the  report, 

L.  C.  MARSHALL, 

Manager,  Industrial  Relations  Division. 


l\ 


Preface  to  Second  Edition 

The  report  on  Works  Committees  and  Joint  Industrial  Councils, 
settmg  forth  the  English  and  American  experiences  in  industrial  rela- 
tions under  war-time  conditions,  was  published  with  the  hope  that  it 
would  prove  beneficial  to  those  interested  in  American  industry. 

The  requests  for  the  report  have  exceeded  our  expectations  many 
times,  with  the  result  that  the  first  edition  is  practically  exhausted,  in 
spite  of  the  fact  that  it  has  been  out  only  three  months. 

_  It 'is  most  gratifying  to  note  that  the  American  business  man  is 
giving  serious  thought  to  the  more  advanced  methods  of  dealing  with 
matters  of  industrial  relations  and  is  desirous  to  learn  of  the  best 
practices. 

We  take  pleasure,  therefore,  in  publishing  the  second  edition,  for 
which  it  has  seemed  wise  to  make  a  nominal  charge,  and  trust  that 
it  may  continue  to  play  its  part  in  helping  to  develop  a  better  under- 
standing more  sympathetic  co-operation  and  greater  harmony  in  our 
industrial  fabric. 

R.  W.  LEATHERBEE, 

Manager,  Industrial  Relations  Dimsion. 

United  States  Shipping  Board 
Emergency  Fleet   Corporation 

PHILADELPrilA,  PA. 
April  75,  jp/p. 


-i 


MR.  L.  C.  MARSHALL, 

Manager  of  the  Industrial  Relations  Division, 

United  States  Shipping  Board 

Emergency  Fleet  Corporation, 
philadelphia,  pa. 
Sir: — 

I  submit  herewith  a  report  on  Works  Committees  and  Joint  Indus- 
trial Councils,  the  materials  for  which  have  been  gathered  during  the 
past  four  months  in  the  intervals  of  other  duties.  Problems  involved 
in  the  organization  and  functioning  of  works  committees  are  dealt  with 
in  some  detail.  The  recommendations  of  the  Whitley  Committee  and 
the  general  movement  toward  joint  industrial  councils  and  works  corn- 
committees  as  agencies  of  so-called  ''co-operative  management"  are 
explained.  Some  attempt  is  also  made  to  set  forth  the  theory  upon 
which  the  advocates  of  co-operative  management  or  industrial  repre- 
sentation base  their  program.  Special  attention  is  given  to  the  psycho- 
logical basis  and  to  the  relation  between  industrial  democracy  and 
management  responsibility. 

Many  letters  of  inquiry  have  been  sent  to  American  manufactur- 
ing establishments,  but  no  attempt  has  been  'rliadfe  to'^^dTlre  complete 
information  concerning  the  extent  to  w'hich  works  committees  or  their 
equivalent  have  been  introduced  into  American  plants,  nor  has  any 
intensive  study  of  American  industrial  representation  plans  been 
attempted.  Enough  first-hand  information  has  been  obtained  from 
American  companies,  however,  to  indicate  that  the  trend  toward  indus- 
trial representation  in  shop  and  works  committees  is  under  way  and 
gaining  momentum. 

Cordial  acknowledgment  is  made  of  assistance  rendered  in  various 
ways  by  Mr.  Montague  Ferry,  Head  of  the  Information  Branch ;  Mr. 
Arthur  Fisher,  Mr.  Paul  Douglas,  Mr.  F.  E.  Wolfe,  Mr.  John  J. 
Casey,  Miss  Mary  B.  Wesner,  Miss  Helen  Olson,  and  Miss  Caroline 
Shaw^  Thanks  are  also  due  the  various  companies  and  individuals 
who  have  kindly  given  permission  for  the  publishing  of  their  experi- 
ence and  views  with  regard  to  works  committees.  The  Department 
of  Labor  Library,  Washington ;  the  Free  Library  of  Philadelphia,  and 
the  Library  of  the  University  of  Pennsylvania  have  rendered  valuable 
aid  in  making  available  important  documents  and  sources. 

Respectfully  submitted, 

INDUSTRIAL  RELATIONS  DIVISION. 

By  A.  B.  Wolfe, 
December  16,  1918.  Head,  Investigation  Branch. 


■jo 


13 


Contents 

PAGE 

Introduction    j  i_i4 

The  Nature  of  Management \\ 

Co-operation  Between  Industrial  Factors H 

Antagonistic   Co-operation    H 

The  Part  of  Labor  in  Antagonistic  Co-operation   12 

Industrial  Representation,  or  "Co-operative  Management"   12 

The  Agencies  of  Industrial  Representation  13 

The  Motives  to  Industrial  Representation   13 

Works  Committees    13 

Chapter  I.    The  Human  Factor  in  Industry 15-24 

1.  Three  Phases  of  In^dustrial  Evolution  15 

The   Industrial  Revolution   15 

Scientific    Management    15 

Recognition  of  the  Human  Factor  15 

The  shortcoming  of  Scientific  Management   16 

Importance  of  the  Psychology  of  the  Worker \7 

Conciliation  and  Mediation — Their  Shortcomings   18 

2.  Our  Contentment  with  Industrial  Peace  20 

3.  The  Demands  of  Labor 2I 

The  English  Labor  Party  2I 

The  Conflict — Attitude  of  American  Labor  22 

Its   Causes    22 

Co-operative  Management  not  a  Substitute  for  a  Square  Deal 

in  Wages,  etc 23 

The  Demand  for  a  Voice  in  Industrial  Government   23 

Chapter  II.    Psychology,  Democracy,  and  Efficiency 25-34 

1.  Psychology  in  Relation  to  Industrial  Management 25 

Behavior    25 

Instincts   25 

Balked    Dispositions    26 

Repression  of  the  Instincts  of  Workmanship  aiid  Seif-Exprdssion  26 

2.  The  Psychology  of  Industrial  Unrest 28 

Development   of  Hostile   Community   Instincts    ...............  28 

Lack  of  Confidence  '  V*  *  29 

Summary  '..'.'.'.'.".'.'.'.'."  29 

3.  The  Demand  for  Industrial  Democracy 30 

The  Content  of  Democracy  !.*.*.*.*.*.'.*.".*.*!.*  30 

Application  of  the   Principles  of  Democracy*  to' the' YndustrVai 

Situation    3Q 

The  Content  of  Industrial  Democracy 31 

4.  Democracy  and  Responsibility 32 

Some  political  analogies    .'...*..'.'.*.'..'.*.*.'.*  32 

Administrative  Responsibility  and  Policy-Determining  Function  32 
Administrative  Responsiblity  Must  Remain  with  the  Manager  32 
Syndicalist  Works  Committees,  not  to  Be  Confused  with  Co- 
operative Management  under  Private  Ownership   34 

Chapter  III.    The  Whitley  Committee  Recommendations 35-63 

1.  The  Whitley  Committee  35 

Instructions  to  the  Committee   .......... '. '. . . .' '. '. '.  [ '.  * .'  .* .,[',  35 

Its   Membership 35 

Causes  Leading  to  Its  Appointment 36 

The   Carton   Foundation   Memorandum 36 

Industrial  Council  in  the  Building  Trades 36 

Convention  of  Iron  and  Steel  Manufacturers 38 

7 


^ 


Chapter  III. — Continued  page 

2.  Reports  of  the  Whitley  Com mittee  39 

The  Interim  Report   39 

Recommendations     39 

Works  Committees  and  Joint  Standing  Industrial  Councils  40 

Suggested  Questions  for  Industrial   Councils   41 

The  Second  Report   42 

Classification     of     Industries     on     Basis     of     Degree     of 

Organization  42 

Recommendations  for  Unorganized  and  Partially  Organized 

Industries    43 

Memorandum  of  the   Minister  of   Reconstruction  and  the 
Minister   of    Labor,   Rejects   the    Recommendations   of 

the  Second  Report  43 

The  Supplementary  Report  on  Works  Committees   44 

Recognition   of   Organized   Labor    44 

Works    Committees    not    to    Be    Used    in    Opposition    to 

Organized  Labor    45 

The  Report  on  Conciliation  and  Arbitration   45 

Compulsory  Arbitration  Opposed   45 

Industrial  Councils  to  Co-operate  with  Existing  Machinery 

for  Conciliation  and  Arbitration   46 

The  Final  R<;port   46 

3.  The  Government  and  the  Whitley  Recommendations 47 

The  Interim  Report  Submitted  to  Trade  Unions  and  Employers' 

Associations  and  to  the  Committee  on  Industrial  Unrest  47 

October  Letter  of  the  Minister  of  Labor  49 

No  Increase  of  State  Control  Intended 49 

Rigidity   of   Organization   not    Intended    50 

Councils  not  to  Usurp  the  Functions  of  Trade  Unions  and 

Employers'   Associations    50 

Compulsory  Arbitration  not  Desired   50 

Need  of  a  Representative  Body  for  Government  Consulta- 
tion with  the  Industry   50 

4.  Progress  of  the  Formation  of  Industrial  Councils    51 

Councils   Established,   in   Process  of   Formation,  and   Contem- 
plated      51 

Councils  for  Public  Utility  Industries   52 

Demand  for  Councils  in  Government  Departments   52 

Councils  Established  by  the  Admiralty  and  Post  Office  Depart- 
ment Criticised 53 

5.  Criticisms  of  the  Whitley  Plan  53 

'                Might  Mean  Compulsory  Arbitration   54 

Technical   Experts  and  Office   Force  not  Represented   54 

The  National  Alliance  of  Employers  and  Employed  56 

Its    Principles    56 

Its  Criticisms  of  the  Whitley  Plan  57 

'                        Fear  of  Govjernmental   Interference    57 

The   Industrial  Reconstruction  Council   58 

The    Federation  of   British   Industries    59 

■                      Its   Purpose    •  • 59 

Its  Fear  of  Governmental  Interference 59 

Its    Proposals 60 

Trade  Councils  60 

Councils  of   Industry   60 

A  National  Industrial  Council 60 

'    ■      'Its  Attitude  Towards  Works  Committees   60 

6.  The  CiOVERNMtNt's  Purpose  62 

To   Prevent  the   Rise  of   Industrial   Disputes    62 

To  Give  the  Worker  a  Voice  in  Industrial  Government  62 

To  Devolve  Industrial  Government  into  Industry  Itself   62 

'  To     Develop     Responsibile     Representation     for     Government 

Conferences    • 62 

To  Insure  Efficiency  and  Competitive  Industrial  Capacity 62 

8 


PAGE 

Chapter  IV.    Works  Committees       64-111 

1.  Nomenclature  ...*.' *  64 

2.  The  Origin  and  Development  of  Works  Committees  ......  64 

Organized  Labor ^ 

The  Shop  Steward    .*....!..**'  66 

Shop  Meetings *   *  ^ 

Piece-rate  Committees   ...............'  67 

Pit    Committees    ^j 

Importance  of  Co-operation  on  Employer's  Part*.*!!.*..'.*.'!.'.*!*  68 

The  Stimulus  of  War  Conditions  !!!!!!!!!!*!!  69 

Dilution  Committees  !!!!!!! 60 

Non-union   Collective   Bargaining   ...!!!!!!!!!!!!!!!!!!!!!!!!!  70 

3.  Functions   jfx 

Demarcation    of    Function    Between    Works    Committees  *  and 

District   Councils    vq 

Functions  Always  Consultative   ! ! 71 

Functions  Vary  with  Type  of  Committee  !!!!!!!!!! 72 

Wages    ■  ■  "  * -, 

Piece-rates    ]   j^ 

Examples  of  Piece-rate  Committees  !!!!!! 73 

Overtime    !..!**!! 75 

Joint  Committee  on  Overtime !!!!!!!!!!!! 75 

Grievances     **  y^ 

Procedure  in   Hearing  Grievances    ! . . ! ! 77 

Changes  in  Process,  etc !!!!!!!!!!!!!!!!!!  77 

War  Conditions,  Demobilization,  etc !!!!!!!!!!!!*  77 

Absenteeism    * '    | ^^ 

Committees   on    yn 

Labor  Turnover   *    ' !  .*   *  *  qi 

Technical  Training r^^ 

Business  Education   !!!!!!! «2 

Suggestions !!!!!!! «l 

Suggestion    Committees    !..!!!!!!'!! gd 

Production   Committees    ! !  *  * r^ 

Appointment  and  Promotion   !!!!!! 89 

Welfare  Committees  !!!!!!!!!!!!! on 

4.  Organization  and  Procedure  ! ! ! ! '       qq 

A.  Problems  of  Organization g^ 

Constitutional   Questions    !.!!!! on 

No  General  Answer  Possible  ..!!!!!!!!!!!!  91 

(1)  Types  of  Committees  g% 

Welfare    Committees    !       gj 

Industrial   Committees    !  _\ 92 

Joint  vs.   Separate   Committees    !.!!!!!!!!.  92 

Advantages  and  Disadvantages  of  Joint  Committees  !*!!  *  93 

Representatives  of  Firm  Should  Be  of  High  Rank  ..!!!!  93 

The  Open  Door   ! ! !    *  *  94 

(2)  Relation  to  Organized  Labor  in  the  Plant   !.!!!!  94 

Composition  of  Committees  !!!!!!!  94 

Safeguarding  the  Interests  of  both  Union  and' Non-Union 

Men Q^ 

Tendency  Toward  Election  of  Union  Men !.!!!!!!  96 

(3)  Arrangement   of   Constituencies    ..!*  97 

Elections  in  Closed  Shop no 

(4)  Skilled  and  Unskilled   !!!!!!!!!!!!!!!!!!!!!  98 

Foreign-born    Laborers    !..!!!!  98 

Negro  Laborers !!!!!!*  100 

(5)  Representation  of  Women !!.***  100 

(6)  Tenure  of  Office  of  Committee  Members  !!!!!!!!!!!!!!!!  102 

9 


Chapter  IV.— Continued  ^""^^ 

(7)   Other  Constitutional  Questions    \^ 

Secret    Ballot    }}g 

Minority   Representation    jjf^ 

Recall J^ 

Officers   ,«-, 

Secretary   -^ 

Pay  of  Secretary J^ 

Size  of   Committee    ^^ 

B.  Procedure .^ 

(1)  Time  and  Frequency  of  Meetmgs   ■■•"•:'-/':''  }X; 

(2)  Amount  of  Time  the  Management  Should  Spend  in  Meetmgs  lU^ 

(3)  Place  of   Meeting    |^ 

(4)  Procedure  in  Meetings   {jJ2 

(5)  Agenda    ^^^ 

(6)  Minutes   \}i 

(7)  Referendum  \^- 

(8)  Relation  of  Works  Committee  to   Foremen    |^ 

Foremen's    Committees • r^ 

General  Principles  which  Should  Govern  Procedure   lit> 

Chapter  V.    Works  Committees  in  the  United  States  ^^^"n? 

Interest  in  Co-operative  Management   1 1^ 

American   Federation  of   Labor    { }^ 

Executive  Committee  of  Socialist  Party   • ^^-^ 

Chamber   of   Commerce   of   the   United    States,    Committee   on 

Industrial  Relations  • J  }^ 

Pronouncements  from  Government  Agencies    •••••."  ^^^ 

Department  of  Labor,   Information  and  Education   Service 

War   Industries   Committee    jj^ 

War  Labor  Policies  Board   }}^ 

Shipbuilding   Labor   Adjustment   Board    .••••;••.••.•••  J}^ 

Provisions  for  Shop  Committees  in  the  Earher  Decisions  iio 

Provisions  in  Later  Decisions  J^^ 

National  War  Labor  Board   J-^ 

Other  Boards  and  Decisions   {^^ 

The  Loval  Legion  of  Loggers  and  Lumbermen  j^^ 

Works  Committees  in  American  Firms  J^ 

Size  of  Plant  in  Relation  to  Committees }^ 

Relation  of  Works  Committees  to  Trade  Unions  at  Large  ....  UU 

Problems  of  Works  Committees  in  Non-union  Plants lol 

Conflict  of  Opinion  as  to  Success  of  Non-union  Industrial 

Representation  Schemes •  •  •  •  •  •  •  •  j^J 

Desirabilitv  of  Building  on  a  Union  Basis  where   Possible  1^ 
The  Business  Agent— Effect  of  Works  Committees  on  His 

Position  and   Functions    }^ 

The  Results  of  Works  Committees   ^-^ 

Chapter  VI.     Conclusion    139-146 

Appendix         I.— Model  .Constitution    of    a    Joint    Industrial    Council, 

Drafted  by  the  British  Ministry  of  Labor   147-14^ 

Appendix      II.— Rebuilding  Trade— An  Ohve  Branch  to  Labor  150-151 

Appendix     III.— Agreement     Between     the     Engineering     Employers' 

Federation  and  Trade  Unions  in  Great  Britain  Ib^-lbJ 

Appendix     IV.— A  Non-union  Collective  Bargaining  Plan 154-157 

Appendix      V.— Works  Committees  and  other  Industrial  Representation 

Plans   in   Operation   in   American   Establishments,   to- 
gether with  Opinions  on  Works   Committees    158-237 

Appendix     VI.— Lost   Time    in   Munition   Factories,   a    New   Way   of 

Dealing  with  Offenders  23»-^41 

Appendix  VII.— Provisions   for  Works  Committees  in  the  Awards  of 

the  National  War  Labor  Board   242-247 

Bibliography 248-254 

10 


Introduction 


The  nature  of  management — Industrial  management  involves  (J, 
organization,  (2)  financing,  (3)  marketing,  all  to  the  end  of  creating 
product  or  service  and  selling  it  for  a  price.  Financing  includes  the^ 
procurement  of  business  capital  (money  or  credit)  for  construction 
of  plant  and  meeting  expenses  for  material,  power,  and  labor  which 
cannot  be  met  out  of  current  income.  Marketing  includes  the  buying 
of  material,  labor,  etc.  to  the  best  advantage,  and  the  selling  of  product 
or  service  to  the  greatest  profit.  Organisation  comprises  the  structure 
and  operation  of  the  labor,  the  land,  the  plant,  machinery,  and  materials 
which  constitute  a  going  concern.  In  a  general  sense,  organization  also 
includes,  it  is  true,  both  financing  and  marketing,  since  a  machinery 
and  method  for  these  processes  have  to  be  set  up  and  kept  in  effective 
running  order.  But  it  is  convenient  to  take  the  term  organization  in 
the  narrower  sense.  In  this  sense  it  marks  what  may  be  called,  broadly, 
the  engineering  aspect  of  management.  The  manager  has  to  fit  together 
material  things  and  human  forces  into  a  productive  organism,  be  it 
mine,  farm,  factory,  or  shipyard. 

Co-operation  between  the  different  factors  of  industry— Co-opQVSi- 
tion  characterizes  all  industry.  It  is  a  truism  to  say  that  the  captain 
of  industry  would  be  helpless  and  useless  in  the  absence  of  labor— a 
fact  which  laborers  recognize  and  utilize  on  occasion  by  refusing  to 
co-operate,  that  is  by  striking.  The  laborer  is  helpless  also  without 
the  manager— ^c?7zr  manager— and  \ie  recognizes  this  by  submitting 
usually  in  good  spirit,  sometimes  sullenly,  to  direction  and  orders. 

Antagonistic  co-operation— But  the  co-operation  which  charac- 
terizes industry  is  not  infrequently  antagonistic  co-operation,  marked 
on  the  manager's  side  by  distrust  of  labor,  class  consciousness,  autoc- 
racy, and  cold  calculation;  and  on  the  laborer's  by  constraint,  with- 
holding of  effort,  ill-will,  unrest,  and  hostility.  Being  in  the  nature 
of  an  engineering  function— fitting  things  together— management, 
especially  in  our  modern  impersonal  industrial  organization,  has  had  a 
tendency  to  neglect  the  human  element,  which  neglect  is  about  as 
disastrous  as  it  would  be  for  an  engineer  to  forget  to  oil  the  bearings 
of  his  machine.  With  the  oil  of  the  co-operative  spirit  lacking  or  too 
thin,  the  industrial  machine  produces  grinding,  rasping,  and  heat,  and 
has^  to  stop  for  repairs— the  patched-up  work  of  mediation  or 
arbitration. 

11 


fSm 


The  part  labor  plays  in  antagoyiistic  management — In  recog-nition 
of  the  human  element  in  industry,  the  phrase  human  engineering  has 
been  coined,  and  in  the  hope  of  oiHng  the  bearings  and  eHminating 
stoppages  the  idea  of  co-operative  management  is  evolving.  Labor  has 
long  demanded  a  collective  voice  in  the  making  of  the  wage  contract 
and  the  determination  of  work  conditions.  Employers  on  the  other 
hand  have  generally  stood  out  against  these  demands  as  far  as  they 
could.  The  result  is  an  industrial  plant  arranged  into  two  hostile  and 
suspicious  camps.  TJie  effect  is  essentially  that  of  a  divided  manage- 
ment  warring  against  itself.  While  the  workers,  denied  a  recognized 
and  constitutional  voice  in  plant  organization  and  conduct  of  industry, 
do  not  seem,  on  the  face  of  things,  to  have  any  part  in  management, 
they  really  do,  under  present  conditions,  play  an  important  part  in  it, 
indirectly  and  under  the  surface.  The  man  who  thinks  he  is  "manag- 
ing his  own  business  without  the  interference  of  labor"  and  who  thinks 
he  is  getting  efficiency  out  of  his  plant  even  if  his  employees  are  rest- 
less and  discontented,  is  probably  laboring  under  an  illusion ;  his  work- 
men may  be  taking  every  opportunity  to  "get  even"  and  "put  one  over 
on  him,"  by  all  the  semi-unconscious  and  intangible  tricks  and  prac- 
tices to  which  any  aggrieved  class  or  person  will  become  habitually 
addicted;  his  foremen  will  not  know  the  joy  of  wholehearted,  cheerful 
work  on  the  part  of  their  men;  his  superintendents  will  find  things 
going  at  cross  purposes  in  a  variety  of  ways  hard  to  explain  and  harder 
to  remedy.  The  "labor  agitator"  of  the  bad  type  will  have  a  fruitful 
field  of  operation,  and  in  general,  compulsion  and  sullenness  will  pre- 
vail where  confident  cheerfulness  and  steady  industry  should  be  the 
normal  day-in  and  year-out  condition. 

Industrial  representation — Industrial  representation,  or  co-opera- 
tive management,  as  some  prefer  to  call  it,  means  the  elimination  of 
antagonistic  management.  It  means  the  recognition  that  the  workers 
not  only  have  a  stake  in  industry  and  should  have  something  to  say 
about  it,  but  that  the  denial  of  a  consultative  voice  to  them  is  respon- 
sible for  much,  if  not  for  most,  of  our  industrial  unrest  and  inefficiency. 
Industrial  representation  means  at  once  specialization  and  co-operation. 
It  means  that  matters  which  concern  employees  only  shall  be  discussed 
and  decided  by  employees  only,  meeting  in  constitutional  assemblies — 
shop  and  works  committees ;  matters  that  concern  the  employers  only 
they  shall  decide ;  but  matters  that  concern  both  shall  be  discussed  in 
joint  conference  (joint  works  committee,  joint  industrial  council)  and 
decided  upon  the  basis  of  open  diplomacy.  Generally  speaking,  work- 
men will  have  no  interest  in  the  financing  and  marketing  ends  of 
management,  except  in  those  cases  where  the  financing  of  the  company 
and  its  selling,  buying,  and  price  policies  have  important  bearing  on 

12 


wage  issues.^  Co-operative  management,  therefore,  does  not  contem- 
plate that  the  workers  shall  have  a  voice  in  financing  and  marketing.  It 
may  mean  in  certain  instances,  however,  that  the  company  must  stand 
ready  freely  and  frankly  to  throw  its  books  open  to  inspection  by 
properly  authorized  representatives  of  its  own  employees." 

The  agencies  of  itidustriol  representation — The  agencies  of 
co-operative  management  are  (1)  within  the  plant,  shop  committees 
and  a  works  committee,^  (2)  in  the  industry  as  a  whole,  district  and 
national  joint  industrial  councils,*  and  special  collective  bargaining 
conventions  or  conferences  between  employers'  associations  and  trade 
unions. 

The  motives  to  industrial  representation — The  movement  for 
co-operative  management  is  today  one  of  the  livest  movements  in 
England  and  it  bids  fair  to  become  a  lively  issue  in  America,  and  this 
on  four  grounds:  (1)  Industrial  unrest  is  everywhere  threatening — 
where  it  has  not  actually  already  overturned  the  established  basis  of 
industrial  control.  (2)  Even  if  unrest  does  not  go  to  syndicalist  or 
Bolshevistic  extremes,  it  seriously  impairs  industrial  efficiency  and 
makes  the  task  of  management  infinitely  harder  than  it  should  be. 
(3)  There  is  a  general  feeling  that  industrial  efficiency  must  be 
increased  (a)  in  order  to  rebuild  the  war-devastated  wealth  of  the 
world,  (^)  to  meet  the  intense  international  economic  competition  the 
coming  of  which,  while  dreaded,  seems  to  be  taken  as  a  matter  of 
course.  (4)  Everywhere  a  new  ethical  spirit  is  developing,  recognizing 
the  worker  as  a  human  being  and  his  right  to  a  voice  in  industrial 
as  well  as  in  political  government. 

Co-operative  management,  in  short,  is  an  aspect  of  industrial 
democracy,  and  aims  at  a  compatible  combination  of  democracy  and 
efficiency  in  the  organization  of  industry. 

Works  committees — With  regard  specifically  to  works  committees, 
the  thought  underlying  the  proposal  of  the  advocates  of  industrial 
representation  for  their  institution  in  American  industrial  establish- 
ments, following  their  actual  existence  in  many  English  factories  and 
the  official  encouragement  which  the  English  government  is  directing  to 
their  further  extension,  is  that  American  employers,  especially  in  large 
establishments,  should  permit  and  encourage  their  employees  to  elect 
representative  committees  whose  function  it  will  be  to  consider  not 

1010*  A.*  in  the  case  of  the  railroad  companies  vs.  the  railroad  brotherhoods.  On  November  ± 
1918,  the  photo-engravers  of  New  York  City  announced  a  new  price  list  to  their  customers' 
Ihis  list  was  made  up  by  the  Photo-Engravers  Union  and  accepted  by  the  employers  This 
IS  an  exceptional  and  highly  interesting  case  where  co-operative  management  touches  financing 
and  price-fixing.  The  photo-engravers  have,  with  union  co-operation,  fixed  a  scale  of  selline 
Vqo^\o^^^  permit   the   payment   of  a   living  wage.^See  the   Survey,  Nov.    16,    1918,   pp 

•     .r^^i^  1^  ****^   understood   policy  of  one  well-known   American   firm  which   two   years   aeo 
instituted  the  works  committee  system  in  its  plant. 


•  See  Chapter  IV. 
*See  Chapter  III. 


13 


■«■ 


\ 


only  grievances  but  problems  of  works  organization,  production 
methods,  shop  rules  and  regulations,  and  in  short  all  matters  which 
affect  the  welfare  and  spirit  of  the  workers  and  the  tone  of  the  rela- 
tions between  them  and  their  employers.  It  is  a  further  thought  that 
the  work  of  these  committees,  while  so  far  as  possible  organized  and 
conducted  by  the  workers  themselves,  should  have  not  only  the  friendly 
interest  and  backing  of  the  employers  but  their  cordial  co-operation 
as  well. 

The  motive  for  this  proposal  is  the  conviction,  in  the  minds  of 
thoughtful  employers  and  students  of  the  industrial  problem,  both  in 
America  and  abroad,  that  industrial  unrest  can  be  allayed  only  by 
measures  which  will  appeal,  to  rational  and  not  too  selfish  employers 
and  workmen,  as  embodying  the  principles  of  a  square  deal.  Those 
who  sponsor  the  committee  plan  are  ready  to  grant  freely  that,  like 
other  expressions  and  methods  of  democracy,  it  may  not  produce  that 
appearance  of  speed  and  accuracy  in  decision  and  organization  which 
characterize,  superficially  at  least,  more  autocratic  methods  of  indus- 
trial control ;  but  they  believe  that  in  the  long  run  industrial  efficiency 
must  be  based  upon  a  square  deal,  and  that  what  is  a  square  deal  can 
be  defined  even  to  the  approximate  satisfaction  of  all  concerned  only 
by  co-operative  discussion  and  deliberation.  Back  of  the  movement 
of  co-operative  management  lies  the  belief  that  there  is  a  vast  fund  of 
good  will,  and  of  productive  energy,  which  has  hitherto  largely  been 
allowed  to  go  to  waste — or  even  turn  sour,  to  produce  industrial  unrest 
and  ferment — because  the  old-time  individualistic  methods  and  auto- 
cratic ideals  of  industrial  management  have  failed  to  take  account  of 
the  psychology  of  the  worker  as  a  real  human  being.  The  motive  to 
co-operative  management,  in  other  words,  is  to  aid  in  securing  indus- 
trial efficiency  as  well  as  industrial  justice  through  a  rational  organiza- 
tion of  industry  which  shall  treat  men  as  men  and  not  as  machines. 
It  is  backed  up  by  the  belief  that  a  square  deal  and  maximum  efficiency 
are  mutually  cause  and  effect,  and  inseparable. 


14 


.1 


Chapter  I.    The  Human  Factor  in  Industry 


1.    Three  Phases  of  Industrial  Evolution 

The  phases  of  industrial  evolution — Since  the  beginning  of  the 
industrial  revolution,  in  the  eighteenth  century,  three  phases  of  indus- 
trial development  are  to  be  distinguished.  The  first  was  constituted  by 
the  industrial  revolution  itself;  the  second  by  the  activity  of  efficiency 
experts  and  their  attempt  to  perfect  industrial  organization  through 
so-called  scientific  management;  and  the  third,  just  now  developing, 
by  recognition  and  understanding  of  the  great  part  which  the 
psychology  of  the  workman  plays  in  industrial  peace  and  efficiency. 

The  first  phase,  the  industrial  revolution — The  nineteenth  century, 
"the  wonderful  century,"  as  Alfred   Russell  Wallace  called   it,  was 
devoted   to   the    study  of   the   laws   of   material   nature   and    to   the 
development  of  physical  equipment.     No  preceding  period  in  the  his- 
tory of  the  human  race  began  to  equal  it  in  scientific  discovery  and 
invention,  and  it  is  doubtful  if  any  succeeding  period  will  surpass  it  in 
this  regard.     For  the  first  time  in  the  world's  history  the  human  mind 
was   really   free  to  devote  its  rational   capacity  to  the  discovery  of 
nature's  methJWir  of  action.     As  this  great  scientific  achievement  grad- 
ually unfolded  it  was  more  and  more  utilized  by  practical  men  in  the 
re-organization  and  advancement  of  economic  production,  a  process 
of  change  which  may  be  said  to  constitute  the  first  phase  of  modern 
industrial  evolution.     Steam,  electricity,  the  development  of  chemistry, 
and  many  other  applications  of  scientific  advancement,  all  contributed 
to    the    transformation    of    the    industrial   process,    a    transformation 
brought  about  on  the  one  hand  by  the  energy  and  effort  of  captains 
and  sub-captains  of  industry,  whose  whole  life-interest  was  wrapped 
up  in  securing  that  greater  efficiency  of  the  physical  organization  of 
their  plants,  which  together  with  low  wages,  they  conceived  to  be  the 
chief  factor  in  productive  efficiency,  and  hence  in  profits ;  and  on  the 
other  hand  by  those  men  of  perhaps  less  driving  energy,  but  more 
constructive  imagination,  whose  satisfaction  it  was  to  provide  the  prac- 
tical inventions  without  which  the  physical  re-organization  of  industry 
would  have  been  impossible.'    This  great  task  of  organizing  the  purely 
physical  productive  forces — the  material  nature   factor — involved,  at 
the  beginning  of  the  century,  the  change  from  hand  to  machine  proc- 
esses and  from  the  domestic  to  the  factory  system ;  at  the  end  of  the 
century  it  had  brought  us  to  the  more  exact  tasks  of  effective  planning 

*  See  Taussig,  Inventors  and  Money  Makers, 

15 


1  .  '  '■^  i^'^.\'^~Kl.^^^-i^>;Hp_^ 


\ 


\ 


of  plant  and  shop,  economical  routing  of  material,  more  minute  sub- 
division of  labor  and  specialization  of  calling,  and  to  the  larger  task  of 
co-ordinating  our  extractive,  manufacturing,  and  transportation  sys- 
tems. All  this  involved  radical  changes  in  the  position  of  labor.  Labor 
became  more  than  ever  a  cog  in  a  mighty  and  intricate  machine,  and 
like  other  parts  of  the  machine,  had  perforce  to  be  in  the  right  place 
at  the  right  time,  very  much  regardless  of  the  desires  or  feeling  of  the 
laborer,  either  as  an  individual  or  as  a  class. 

The  second  phase,  scientific  management — The  second  phase  in 
the  evolution  of  industrial  management  developed  at  about  the  begin- 
ning of  the  present  century  when  the  efficiency  expert,  or  industrial 
engineer,  as  he  now  prefers  to  be  called,  put  in  his  appearance. 
So-called  scientific  management  had  its  birth  in  Taylor  motion-study 
schemes  and  "scientific"  wage  bonuses,  and  production  managers  were 
led  to  study  the  labor  factor  in  their  establishments.  But  they  were 
left,  from  the  whole  point  of  view  of  scientific  management  authorities, 
to  regard  labor  practically  in  the  same  light  as  that  in  which  they 
regarded  their  machinery  and  raw  material,  namely,  as  something  to 
be  shaped,  manipulated,  adjusted,  put  in  its  proper  place,  and  left  to 
perform  its  allotted  task  with  automatic  regularity  and  monotony. 

The  third  phase,  recognition  of  the  human  factor — A  third  phase, 
now,  we  may  hope,  being  entered  upon,  will  be  characterized  by  the 
development  of  a  type  of  industrial  management  which  will  be  keenly 
and  truly  cognizant  of  the  part  which  human  nature  plays  in  industrial 
organization  and  which  will  clearly  understand  that  the  needs,  real  or 
fancied,  of  the  workingman — his  instincts,  prejudices,  emulations, 
ambitions — are  as  important  in  the  weaving  of  the  industrial  fabric 
as  is  the  quality  of  steel  which  goes  into  a  cutting  tool,  the  eflfective 
routing  of  material,  or  the  most  scientifically  devised  cost-keeping 
system.  In  other  words,  this  third  phase  will  be  one  in  which  full 
recognition  is  given  to  the  human  factor,  and  in  which,  if  labor  makes 
impossible  or  unreasonable  demands,  the  employer  will  seek  to  under- 
stand the  cause  of  those  demands  rather  than  flatly  refuse  to  consider 
them  or  offer  a  take-it-or-leave-it  compromise. 

The  shortcoming  of  scientific  management — The  great  short- 
coming of  the  scientific  management  expert,  as  well  as  of  the  average 
industrial  engineer  or  production  manager,  was,  and  is,  his  sometimes 
sublime  unconsciousness  of  the  importance  of  the  second  great  factor, 
the  mental  attitude  of  the  worker,  or  rather,  perhaps,  his  failure  to 
see  the  worker's  attitude  as  it  really  is.  The  efficiency  experts  have 
been  too  much  in  the  habit  of  regarding  the  workingman  as  a  purely 
mechanical  means  to  physical  ends.  That  this  conception  has  been 
detrimental  to  the  very  objects  which  the  experts  wish  to  accomplish  is 

16 


shown  by  the  almost  universal  hostile  attitude  of  labor,  whether  organ- 
ized or  unorganized,  toward  scientific  management,  even  in  its  milder 
forms.  Scientific  management  is  only  pseudo-  or  semi-scientific  in 
that  it  fails  really  to  "manage"  the  human  nature  involved  in 
production.^ 

Importance  of  the  psychology  of  the  zvorker — However  much  of 
a  "rough-neck"  the  workingman  may  be,  however  crude  his  intellectual 
processes,  his  mental  machinery  is  nevertheless  infinitely  more  complex 
and   delicate  than  that  of  the   finest  chronometer.     We  reserve  the 
adjustment  of  chronometers  to  men  who  understand  delicate  machin- 
ery, but  too  often  the  adjustment  of  this  complex  human  factor  to  the 
industrial  process  is  left  either  to  the  blind  power  of  conflicting  and 
passionate  forces  or  to  the  tender  mercies  of  experts  who  have  slight 
perception  or  knowledge  of  the  real  psychological  elements  with  which 
they  have  to  deal.     The  average  business  man  or  captain  of  industry 
prides  himself  upon  being  a  good  judge  of  human  nature.     He  usually 
is  so,  in  all  those  matters  which  have  to  do  with  the  financing  and 
marketing  phases  of  his  enterprise,  which  involve  his  own  reputation 
among  other  business  men  and  the  reputation  of  his  goods  among  con- 
sumers.    In  the  task  of  surrounding  himself  with  an  able  and  loyal 
personnel  in  management  and  office  force,  he  has  to  be  a  keen,  quick 
judge  of  temperament  and  capacity.    In  securing  and  holding  the  good 
will  of  the  purchasing  public  he  has  to  approach  human  nature  from 
another  side— its  wants,  its  emulations,  its  vanities,  its  demand  for  low 
prices,  its  reactions  under  the  varied  types  of  suggestion  embodied  in 
advertising.     But   in   his   relations   to   labor,   especially   in  the   larger 
plants  where  direct  contact  between  the  higher  management  and  the 
rank  and  file  of  workers   is  a  physical  impossibility,  the  American 
business  man  often  fails,   from  lack  either  of  ability  or  of  time,  to 
inform   himself   with   regard   to  the   real   psychology   of   the   worker. 
The  ever-recurring  conflicts  between  labor  and  capital,  with  all  the 
incalculable  loss  they  incur  for  both,  not  only  in  money,  but  in  the 
perpetuation  of  ill  will  and  hard  feeling,  are  sufficient  evidence  that 
the  managers  of  industry  have  been  unable  or  unwilling  to  secure  a 
smooth  running  co-ordination  between  the  mechanical  factor  and  the 
human  factor  in  production.     Their  failure  to  do  this  is  proof  that 
they  do  not  understand  the  mental  make-up  of  labor,  and  consequently 
do  not  manage  eflfectively  its  co-ordination  with  plant  machinery  and 
raw  material.     In  their  concentration  of  attention  upon  the  technicali- 
ties  of   physical    organization    of   plant   and   the   psychology   of    the 

>  See  John  R  Commons,  Labor  and  Administration,  1913;  R.  F.  Hoxie  Scientific 
Management  and  Labor.  1915.  "In  spite  of  the  development  of  Big  Business  Wan  nature 
.r'h/'T"'""?  h'*'^  ^""T'  ^''5  ^"  .its  cravings  and  all  its  tendencies  toward  svmrathywheS 
It  has  knowledge  and  toward  prejudice  when  it  does  not  understand.  The  fact  is  that  the 
growth  of  the  organization  of  industry  has  proceeded  faster  than  the  adjustment  of  he 
McTnVAt,   Jan..    19^6!"    '"^'"^'^    '"    industry. "-John    D.    Rockefeller.    Jr..    \ni^^' AUanHc 

17 


consumer,  the  captains  of  industry  have  tried  to  ignore  the  most  diffi- 
cult, if  not  the  most  important,  problem  of  productive  management— 
namely,  the  task  not  only  of  avoiding  conflicts  between  labor  and 
management,  but  of  drawing  upon  that  vast  potential  fund  of  co-opera- 
tive good  will  and  positive  helpfulness  in  plant  administration  which 
undoubtedly  exists,  and  which  only  awaits,  for  its  realization  and 
application,  the  development  of  some  plan  of  organization  which  will 
bring  plant  management  and  representatives  of  labor  into  frequent 
conference,  ztnth  all  their  cards  face  up  on  the  table. 

It  is  not  too  much  to  say  that  practically  a  century  and  a  half  of 
conflict  between  employers  and  employees  has  l)een  due  fundamentally 
quite  as  much  to  this  lack  of  perception  on  the  part  of  employers  as  to 
the  ''greed  of  capital,"  the  headlong  pugnacity  of  labor,  or  the  cor- 
ruption, here  and  there,  of  a  labor  official— all  of  which  have  doubtless 
been  in  part  the  result  as  well  as  the  cause  of  the  absence  of  a  real 
psychological  rapprochement  between  labor  and  capital. 

Conciliation  and  mediation — The  growth  of  large-scale  schemes 
for  conciliation  and  mediation,  whether  under  government  encourage- 
ment and  control  or  otherwise,  might  be  cited  as  evidence  of  a  tendency 
for  labor  and  capital  to  try  to  "get  together."  So  also  with  collective 
bargaining  in  most  of  its  aspects.  It  affords,  spasmodically,  an  oppor- 
tunity, often  forced,  for  contact  between  representatives  of  the  two 
sides,  but  too  frequently  this  contact  is  under  relations  so  strained  as 
to  preclude  any  attempt  to  develop  an  atmosphere  of  friendly  co-opera- 
tion in  the  interests  of  the  concern  or  the  industry  as  a  whole. 

Conciliation,  mediation,  and  arbitration  have  achieved  notable 
results  in  bringing  labor  and  capital  into  conference  on  special  occa- 
sions and  for  specific  purposes,  but  they  have  fallen  short  of  securing 
that  universal,  continuous,  and  frank,  man-to-man  understanding  and 
confidence  without  which  industrial  relations  can  never  be  expected  to 
reach  a  stable  equilibrium  on  a  high  plane  of  productivity  and 
efficiency.  It  is  worth  noting  that  most  conciliation  and  mediation 
schemes  hitherto  in  operation  or  proposed  do  not  aflford  contact  between 
the  worker  for  his  immediate  representative)  and  the  managers;  and 
the  more  ambitious  the  scheme  the  less  is  the  probability  of  such  con- 
tact, in  the  absence  of  definite  machinery  to  secure  it.^ 

However  valuable  conferences  between  representatives  of  emplov- 
ers  and  the  higher  officials  of  organized  labor  may  be,  they  do  not 
supply  a  basis  for  that  intimate  contact,  discussion,  and  co-operation 

'See  Rarnett  and  McCabe,  Mediation,  Investigation,  and  Arbitration  in  Industrial 
Disputes,  1916,  Ch.  5  (the  same  maner  may  be  found  in  the  Final  Report  of  the  United 
States  Commission  on  Industrial  Relations,  1915,  pp.  194-201)-  and  Suffern  rnnr.-lirf.-^^ 
and  Arbitration  in  the  Coal  Industry  of  America,  191^.  For  de\Vrip^"on  of  a' concUiatior^^^ 
collective  bargaining  system  which  comes  close  to  the  joint  industrial  council  pbn  see 
United  States  Bureau  of  Labor  Statis  ics.  Monthly  Review.  May.  1918.  pp  166  179  '"trade 
Agreements  in  the  Stove  Industry,"  by  Boris  Emmet.  ^"o  i/y,      i  raae 

18 


which  are  expected  to  result  from  a  properly  devised  system  of  works 
committees  and  joint  industrial  councils.^ 

Conciliation  and  mediation  are  too  often  remedies  for  industrial 
fever,  and  arbitration  is  a  last  desperate  measure  which  not  infre- 
quently lays  the  basis  for  future  organic  disturbance  without  really 
removing  the  old  difficulty.  Arbitration  and  conciliation,  under  the 
conditions  in  which  they  are  usually  resorted  to,  are  good  so  far  as  they 
go,  but  they  do  not  go  far  enough,  nor  in  precisely  the  right  direction. 
In  a  sense  they  are  negative.  If  they  maintain  or  increase  productive 
power,  it  is  only  because  on  the  whole  they  tend  to  lengthen  the  periods 
of  industrial  truce  in  comparison  with  those  of  open  warfare. 

The  inadequacy  of  collective  bargaining  of  the  older  type  is 
especially  well  brought  out  in  the  Memorandum  of  the  Carton  Founda- 
tion, on  the  Industrial  Situation  after  War:^ 

The  explanation  of  the  comparative  failure  of  the  employers' 
associations  and  trade  unions  on  the  constructive  side  of  the  indus- 
trial problem  is  to  be  found  in  their  strictly  sectional  and  defensive 
-  origin  and  outlook.  Regarding  themselves  as  entrusted  with  the 
interests  of  one  party  to  industry  and  not  of  industry  itself,  they 
have  paid  no  attention  to  the  problems  and  difficulties  of  the  other 
side,  and  they  have  come  together  only  when  one  had  a  demand 
to  make  of  the  other  or  when  a  conflict  was  imminent.  Thus  they 
have  always  met  in  an  atmosphere  of  antagonism,  and  their  nego- 
tiations have  been  carried  on  as  between  two  hostile  bodies. 
Exchange  of  views  has  come  at  too  late  a  stage  in  the  proceedings, 
when  a  stand  has  already  been  taken  on  both  sides  and  prestige  or 
prejudice  forms  an  obstacle  to  concessions.  What  is  still  more 
important,  their  discussions  have  been  confined  to  specific  points 
of  dispute  and  have  not  embraced  the  consideration  of  constructive 
measures  for  the  improvement  of  industrial  conditions  and  the 
increase  of  efficiency.  Yet  the  possibilities  of  combined  action 
which  lie  in  these  two  great  groups  of  highly  organized  and  power- 
ful bodies  might  transform  the  whole  face  of  industrial  life.  Their 
united  knowledge  of  both  sides  of  the  industrial  process  should 
enable  them  to  throw  light  on  every  phase  of  its  successive 
developments.  Their  united  strength  would  render  them,  in  com- 
bination, practically  irresistible.  But  to  secure  the  realization  of 
these  possibilities  the  co-operation  between  the  two  groups  must  be 
continuous  and  constructive,  and  must  be  based  upon  a  recognition 

»  The  number  of  labor  men  who  actually  play  a  part  in  the  proceedings  of  a  district 
meeting  of  employers  and  union  delegates  for  establishment  of  contract  standards  of  wages 
hours,  and  conditions  of  work,  is  greater,  however,  than  appears  on  the  surface,  because  the 
local  unions  send  a  large  number  of  unofficial  delegates  who  hang  about  the  hotels  and 
advise  with  the  official  representatives,  but  do  not  appear  on  the  floor  at  the  official  meetines 
of   the  joint   conference.  * 

2  London,    October     1916       Reprinted   by   the   United    States    Shipping    Board    Emergency 
Fleet  Corporation,  Philadelphia,   1918.  i^ucigcncy 

19 


fikit 


w 


% 


of  the  common  interests  of  employers  and  employed,  both  as 
parties  to  industry  and  members  of  the  community.  Employers 
must  realize  that  both  their  own  interests  and  the  obligations'  of 
citizenship  impose  upon  them  the  necessity  of  a  sympathetic  under- 
standing of  the  lives  and  standpoint  of  those  with  whom  they  work 
and  a  willingness  to  co-operate,  without  dictation  or  patronage,  in 
ever>'  endeavor  to  improve  their  material  or  social  conditions. 
Labor  must  realize  its  direct  interest  in  the  improvement  of  indus- 
trial processes,  the  organization  of  industry,  the  standard  and- 
quantity  of  production,  and  the  elimination  of  waste  in  material  or 
effort.  Both  the  employers'  associations  and  trade  unions  must 
learn  to  regard  themselves  as  joint  trustees  of  one  of  the  most 
important  elements  of  the  national  life. 

•    2.  Our  Contentment  with  Industrial  Peace. 

Our  strivings  for  mere  peace  in  industry  throw  a  flood  of  light 
upon  our  standards  of  industrial  efficiency  and  our  ideals  of  the  rela- 
tion that  should  exist  between  employer  and  employees.  Our  standards 
are  not  exacting.  We  may  compare  our  satisfaction  with  industrial 
peace,  when  we  fancy  ourselves  momentarily  in  possession  of  its  bless- 
ings, to  our  complacent  gratification  when  we  appear  to  secure  some- 
thing resembling  honesty  in  state  and  municipal  govermiient.  It  is,  of 
course,  needless  to  remark  that  in  a  society  able  to  conceive  and  to  hold 
high  standards  of  efficiency  we  should  be  content  neither  with  indus- 
trial peace  nor  with  civic  honesty.  To  be  sure,  if  we  could  but  com- 
pass these  minimum  and  in  a  sense  negative  virtues,  we  should  find 
ourselves  surprised  by  an  unaccountable  increase  in  industrial  and  gov- 
ernmental economy ;  but  if  our  standards  were  high  and  exacting,  we 
should  demand  carefully  thought-out  steps  to  secure,  positively, 
efficiency  in  the  largest  sense — a  smooth-running  government  and 
industry  in  which  all  the  parts  work  harmoniously  to  the  accomplish- 
ment of  the  largest  purposes  with  the  minimum  necessary  expenditure 
of  energ}'. 

Efficiency — a  good  word  now  unfortunately  much  overworked  and 
maltreated---has  been  regarded,  until  recently,  as  something  which  only 
idealists,  in  the  realm  of  government,  would  concern  themselves  with ; 
in  business,  as  a  matter  falling  entirely  within  the  sphere  of  the  pro- 
duction manager  and  the  efficiency  experts.  Most  of  these  function- 
aries have,  however,  given  too  little  regard  to  the  powerful  subtleties  of 
the  human  factor  with  which  they  were  unwittingly  dealing;  they 
simply  have  failed  to  sense  the  significance  of  what  is  now  the  strategic 
factor  in  industrial  efficiency — the  human  nature  of  the  workman.^ 

'  "Nothing  is  more  surprising,  often,  to  employers  and  the  merely  scientific  man,  than 
the  unanimity  with  which  thousands  of  unorg-ajiized  laborers  will  suddenly  turn  out  on 
strike    at    the    call    of    a    few    hundred    organized    laborers.      It    is    their    desperate    recognition 

20 


3.    The  Demands  of  Labor 

Some  of  the  issues  which  produce  discord,  if  not  actual  violence, 
between  labor  and  capital  go  so  deep  that  no  mere  device  of  industrial 
governmental  machinery,  however  much  contact  it  afford  between 
employer  and  employee,  can  be  expected  to  settle  them.  If  the 
employer  continues  to  hold  that  he  should  purchase  his  labor,  whether 
under  individual  or  collective  bargaining,  at  the  "market  price,"  and 
that,  the  business  being  his,  he  is  entitled  to  all  its  profits — while  ori 
the  other  hand  the  workmen,  becoming  socialistically  inclined,  hold 
that  a  business  run  by  an  employer  for  pecuniary  profits  under  a  com- 
petitive price  system  can  never  be  run  really  for  the  public  good — and 
if,  further,  they  hold  that  they  are  entitled  to  share  heavily  in  the 
profits  which  they  help  to  produce,  then  there  is  no  such  thing  as  "peace 
without  victory."  One  side  or  the  other  will  have  to  demonstrate 
that  its  demands  are  just  and  conducive  to  the  general  welfare. 

The  demands  of  the  English  Labor  Party — The  point  to  this  seem- 
ing digression  lies  in  the  fact  that  labor  is  making  these  demands — and 
more.  We  must  recognize  the  significance  of  the  fact  that  the  laboring 
class  comprises  the  vast  majority  of  the  "population,  and  that  it  only 
awaits  organization  into  a  consolidated  labor  party  to  find  itself  in  pos- 
session of  supreme  political  power.  English  labor  is  much  nearer  such 
organization  than  is  American.  If  the  English  workman  is  even  partly 
successful  in  his  demands,  American  labor  will  have  a  powerful  motive 
to  organize  for  similar  ends.^  The  essential  consideration  is  that  the 
extent  to  which  labor  will  insist  upon  the  realization  of  a  socialistic 
program,  such  as  is  proposed  by  the  British  Labor  Party,  and  the 

that  the  day  of  individual  bargains  is  gone  for  them.  And  it  would  seem  that  a  corporation 
representing  thousands  of  stockholders  speaking  through  one  man,  might  be  able  to  anticipate 
unionism  by  finding  some  means  of  scientific  organization  of  labor,  before  installing  scientific 
management.  In  lieu  of  this,  they  wait  until  a  union  is  formed,  and  then  complain  that 
*l  '^  hostile  to  efficiency.  The  example  of  the  stove  moulders,  which  I  have  given,  shows 
that  their  hostility  to  efficiency  is  the  hostility  to  methods  that  take  them  at  a  disadvantage 
in  their  power  of  protecting  themselves.  When  once  they  are  guaranteed  assurance,  as  in 
the  foundry  business,  that  this  will  not  be  done,  they  respond  as  reasonably  as  other 
people,   — John   R.    Commons,   Labor  and  Administration,    1913,   p.    147. 

»  "The  Labor  Party  is  the  party  of  the  producers  whose  labor  of  hand  and  brain  pro- 
vide the  necessities  of  life  for  all,  and  dignify  and  elevate  human  existence.  That  the 
producers  have  been  robbed  of  the  major  part  of  the  fruits  of  their  indu'^try  under  the 
individualist  system  of  capitalist  production  is  a  justification  for  the  party's  claims  One  of 
the  main  aims  of  the  party  is  to  secure  for  every  producer  his  (or  her)  full  share  of  those 
truits—and  to  ensure  ;he  most  equitable  distribution  of  the  nation's  wealth  that  may  be 
possible,  on  the  basis  of  the  common  ownership  of  land  and  capital  and  the  democratic 
control  of  all  the  activities  of  society 

"We  believe  that  the  path  to  the  democratic  control  of  industry  lies  in  the  common 
ownership  of  the  means  of  production:  and  we  shall  strenuously  resist  every  proposal  to 
hand  back  to  private  capitalists  the  great  industries  and  services  that  have  come  under 
Government  control  during  the  war."— Arthur  Henderson,  The  Aims  of  Labor,  2d  Edition 
f  ?L  ^n*"^'-  u^t\  PP-  2^'  28-  See  also  pp.  118-123.  The  Social  Reconstruction  Program 
ot  the  British  Labor  party  is  published  in  full  in  the  Monthly  Review,  United  States  Bureau 
of    Labor    Statistics,    April,    1918,    pp.    63-83. 

See   also    the    Reconstruction    Resolutions   of   the    California   State    Federation    of    Labor 
Which  contain  the  following  section:     "Industry   should  not   be  controlled  bv  a  jostling  crowd 
ot  separate  and  priavte  employers  with  their  minds  bent,  not  on  the  service 'of  the  community 
but    by    the,  very    law    of   their   being,    only    on    the    utmost    profiteering.      We    should    look   to 
scientifac   reorganization   of  the   nation's   industry,   not   deflected,  by   individual   profiteering    on 
1918         225      *    '=o'""^o"    ownership    of    the    means    of    production."      The    Survey.    Nov     23, 

21 


4| 


11, 


degree  of  social  discord  and  dislocation  occasioned  by  its  realization,  in 
part  or  in  full,  will  depend  largely  upon  the  attitude  of  employers 
toward  labor  and  especially  upon  the  extent  to  which  understanding 
and  mutual  good  will  can  be  substituted  for  the  hitherto  prevalent 
conflict-attitude.^ 

The  conflict-attitude— The  attitude  of  hostility,  which,  in  the  by 
and  large,  characterizes  the  relations  between  labor  and  capital  every- 
whej-e,  but  especially  in  the  United  States,  needs  explanation.  The 
frequent  absence  of  confidence  and  good  will  between  employer  and 
employee  is  the  most  costly  shortcoming  of  our  whole  economic  organ- 
ization. It  is  hard  to  escape  the  impression  that  each  side  is  frequently 
bent  less  on  producing  goods  for  the  consuming  public  than  on  "getting 
even"  with  the  other  side. 

Its  causes — No  doubt  the  vicious  lump-of -labor  theory,  according 
to  which  the  workman  reasons  that  there  is  only  so  much  work  to  go 
around,  and  if  he  does  too  much  today  he  may  have  nothing  to  do 
tomorrow,  is  responsible  for  many  of  the  policies  and  practices  of 
organized  labor,  some  of  which  policies  a  really  peaceful  and  efficient 
industrial  society  would  find  it  hard  to  tolerate.  Temperamentally  lazy 
men  will  doubtless  always  try  to  "soldier"  on  the  job,  but  an  organized 
and  apparently  well-nigh  universal  "ca  canny"  system  must  have  other 
causes  back  of  it  than  laziness  or  determination  to  "get  even"  with 
the  employer.  Similarily,  we  must  search  further  back  than  the  rea- 
sons which  are  usually  given  for  trade  union  restrictions  on  member- 
ship, rules  providing  for  unduly  long  apprenticeship,  opposition  to 
piecework,  etc.  All  of  these  doubtless  have  their  immediate  motive  in 
the  desire  of  labor  to  hold  its  own  collectively  against  the  massed  bar- 
gaining power  of  capital. 

The  fundamental  cause  of  the  conflict-attitude  lies  in  the  fact  that 
the  employer,  on  his  side,  and  the  laborer  on  his,  are  both  seeking  to 
appropriate  as  much  as  they  can  of  the  same  thing,  the  product  of 
industry — so  eager  that  in  their  eflfort  to  get  their  share  they  are  will- 
ing to  see  the  total  greatly  reduced.  It  is  this  pig-trough  practice  which 
gives  the  keenest  critics  of  our  "pecuniary  culture"  their  cue  for  the 

*  Labor's  conception  of  this  conflict-attitude  and  its  causes  Is  reflected  in  the  Supole- 
mentary  Report  by  John  B.  Lennon  and  James  O'Connell,  in  the  Final  Report  of  the  United 
States  Industrial  Relations  Commission.  1915,  pp.  286,  267 — "VVe  hold  that  .  .  .  tlie  organi- 
zation of  the  trade  unions  and  of  the  employers*  organizations  should  be  promoted,  not,  how- 
ever, for  the  sole  purpose  of  fighting  each  other,  but  for  the  commendable  purpose  of  collective 
bargaining  and  the  establishing  of  industrial  good  will.  Organizations  of  employers  that 
have  no  object  in  view  except  to  prevent  labor  having  a  voice  in  fixing  the  conditions 
of  industry  under  which  it  is  employed,  have  no  excuse  for  existence,  as  they  are  a  bar  to 
social  tranquility  and  a  detriment  to  the  economic  progress  of  our  country.  The  evidence 
before  the  Commission  shows  that  organized  labor  has  no  desire,  nor  has  it  attempted,  to 
control  the  business  of  the  employer.  It  insists  that  it  has  a  right  to  a  voice,  and  a  potent 
voice,  in  determining  the  conditions  under  which  it  shall  work.  This  attitude,  we  are  sure, 
will  be  continued  in  spite  of  the  oppositon  of  any  so-called  employers'  organizations."  Whether 
or  not  Messrs.  Lennon  and  O'Connell  have  a  just  and  correct  view  of  the  situation  is  not 
the  question;  the  point  is  that  their  statement  doubtless  reflects  the  feelings  and  demands 
of  a  great  mass   of  working  men. 

22 


charge  that  modern  industry  is  run  not  for  the  public  good,  but  for 
money  profiteering.^  The  development  of  unquestionable  industrial 
efficiency  presupposes  the  substitution  of  the  "work-bench"  for  the 
"pig-trough"  philosophy,-  and  this  cannot  be  done  so  long  as  a  square 
deal  in  wages  and  work  remains  to  be  made. 

Co-operative  management  not  a  substitute  for  a  square  deal,  hut  an 
avenue  to  it — Whatever  machinery  of  industrial  democracy  or  co-opera- 
tive management  in  the  form  of  works  committees  and  industrial  coun- 
cils for  collective  bargaining  and  the  governing  of  the  general  relations 
between  employers  and  employees  may  be  proposed  or  in  the  fullness 
of  time  established,  it  should  be  clear  from  the  outset  that  such  machin- 
ery cannot  be  offered  as,  in  itself,  a  substitute  for  a  square  deal,  but 
only  as  one  avenue  leading  toward  it,  and  toward  real  industrial 
efficiency.  Nobody  will  expect  the  laborer  to  be  satisfied  with  a  piece 
of  governmental  machinery,  however  large  a  place  he  may  have  in  its 
workings,  so  long  as  he  feels  that  he  is  not  getting  a  just  share  in  the 
product  of  industry. 

On  the  other  hand,  even  should  the  most  extreme  demands  of  labor 
be  satisfied  so  far  as  wages,  etc.  are  concerned,  the  workers  would  still 
be  dissatisfied  and  restless  if  an  autocratic  control  of  industrv  remained 
in  practice.  The  time  is  probably  past,  whether  we  like  it  or  not,  when 
an  employer  can  say,  "My  business  is  my  own  to  run  as  I  please!"  He 
may  "get  by"  with  this  old-time  individualistic  attitude  for  a  time,  but 
his  industrial  life  will  be  marked  by  a  succession  of  costly  contests  with 
labor  and  with  a  public  opinion  which  has  undergone  remarkable 
change  on  these  matters  in  the  past  few  years ;  and  he  will  in  the  long 
run  lose  out  in  productive  competition  with  men  and  firms  who, 
by  taking  an  attitude  more  in  keeping  with  the  spirit  of  the  times, 
regard  their  business  as  something  in  the  nature  of  a  public  utility  for 
public  ends,  and  thereby  secure  the  confidence,  good  will,  and  hearty 
co-operation  of  their  employees. 

The  demand  for  a  voice  in  industrial  government — One  way  to  do 
this,  according  to  the  advocates  of  co-operative  management,  is  to 
recognize  the  workers'  desire  for  a  measure  of  self-government  in 
industrial  relations,  as  he  is  supposed  to  have  it  in  political  affairs. 
This  desire  for  a  voice,  co-ordinate  with  the  employer's,  in  the  control 
of  working  conditions,  the  organization  and  change  of  processes,  and 
all  the  hundred  and  one  details  that  are  involved  in  the  relations 
between  employer  and  workman,  is  in  places  second  in  its  intensity  only 
to  the  desire  for  higher  wages  and  more  leisure.  It  is  a  demand  less 
easy  of  definite  expression — although  the  passionate  adherence  to  the 

*  Thorstein    Veblen,    The    Instinct    of    Workmanship. 

•  Cf.   T.    N.   Carver,   The   Religion   Worth   Having,   and   Lssays   in   Social   Justice. 

23 

y 


•Si-t  .^-BF»' 


ii%yiv=j»...f'f' :  -,f.^^, 


K-*' 


closed  shop  principle  is  one  expression  of  it— than  that  for  higher 
wages  or  shorter  hours,  but  in  the  long  run  it  will  be  found  of  very 
great  significance  both  to  the  maintenance  of  industrial  peace  and  to 
the  development  of  productive  efficiency. 

The  war  has  forced  us  to  the  recognition  of  the  human  factor 
much  sooner,  much  more  generally,  than  would  otherwise  have  been 
the  case.  One  of  the  beneficial  by-products  of  the  war  will  be  a 
quickened  consciousness  of  the  importance  of  human  psychology  in 
industry  and  the  determination  on  the  part  of  employment  and  pro- 
duction management  to  utilize,  rather  than  to  antagonize,  the  human 
factor. 


Chapter  II.    Psychology,  Democracy,  and  Efficiency 


M 


1.    Psychology  in  Relation  to  Industrial  Management 

Handling  men — The  psychology  of  the  working  man  is  not  essen- 
tially different  from  that  of  any  other  individual.  But  managers  and 
employers  have  assumed  that  it  is  different.  This  assumption  is  an 
error  of  judgment  and  an  obstacle  to  effective  industrial  management. 
The  latter  depends,  as  we  have  seen,  on  the  one  hand  on  knowledge  of 
materials  and  natural  forces,  and  on  the  other  on  knowledge  of  human 
nature.  To  handle  men  you  have  to  know  them,  and  to  know  men 
means  to  know  their  psychology,  their  motives,  their  attitudes  toward 
the  world  in  which  they  live  and  work. 

Men  are  handled  by  appeal  both  to  their  feelings  and  to  their 
reason.  Primarily,  the  way  men  reason  is  determined  by  their  emo- 
tional attitudes.  To  get  a  man  to  act  and  to  act  substantially  in  the 
way  you  desire,  you  have  to  touch  the  right  springs  to  his  action.  In 
other  wordsy  you  have  to  appeal  to  the  appropriate  motives,  and  if 
these  do  not  exist  in  him,  you  have  to  create  them,  if  possible.^ 

Modern  *'behavioristic"  psychology,  while  as  yet  it  is  in  an  unde- 
veloped state,  is  able  to  throw  a  flood  of  light  upon  this  problem  of 
human  engineering.  We  find  men  acting  in  accordance  with  certain 
hereditary  tendencies  and  certain  acquired  habits  which  motivate  and 
guide  most  of  their  activities.  Human  desires  and  interests  in  all 
their  seeming  infinite  variety  are  largely  acquired  from  the  social 
environment  of  the  individual,  but  they  all  rest  back  upon  inherited 
instincts  or  racial  desires  which  are  found  upon  inquiry  to  be  operative 
in  the  life  of  every  human  individual.  There  are  numerous  classifica- 
tions of  these  instincts  and  there  is  no  agreement  among  psychologists 
as  to  their  exact  number  or  the  exact  dividing  line  between  instincts 
and  acquired  desires  and  habits.  Some  psychologists  recognize  as 
many  as  twelve  or  fifteen  so-called  fundamental  or  primary  instincts, 
while  others  prefer  to  reduce  them  to  three— fear,  sex,  and  hunger. 
Without  attempting  to  consider  the  academic  question  as  to  the  number 
of  primary  instincts,  we  may  for  our  purpose  be  fairly  confident  that 
the  following  are  the  most  significant  to  our  problem :  the  instinct  of 
workmanship-  or  self-expression,  the  instinct  of  pugnacity,  the  desire 
for  recognition  and  distinction,  and  the  gregarious  tendency. 

-p  u  ^^•,  ^o^e*"*  ^-  Wolf,  "The  Creative  Workman,"  an  address  delivered  before  tie 
lechnical  Association  of  the  Pulp  and  Paper  Industry,  Davton,  Ohio,  Mav  16.  1918  Also 
by  the  same  writer  "Individuality  in  Industry,"  United  States  Bureau  of  Labor  Statistics 
Bulletin  No.   227,  October,   1^17,  pp.   193-206. 

»  Mr.    Veblen's   term.    Mr.   R.    B.   Wolf   calls   it   the   "creative   impulse." 


•^/mn* 


Balked  dispositions — Whether  a  desire  be  instinctive  or  merely  the 
product  of  suggestion  and  imitation,  we  know  that  a  thwarted  desire 
may  be  the  cause  of  profound  disturbance  to  a  person's  mental 
equilibrium.  If  the  human  organism  is  instinctively  "set"  to  a  given 
action  or  line  of  activity — in  other  words,  if  instinct  stimulates  us  to 
do  thus  and  so — and  this  action  is  obstructed,  delayed,  or  prevented, 
the  resulting  mental  state  is  what  some  psychologists  call  a  "balked 
disposition,"^  or  "repressed  wish/'^  Too  many  repressed  desires  result 
in  a  state  of  chronic  balked  disposition,  and  may  lead  to  a  highly 
nervous  condition,  and  not  infrequently  to  neurasthenia  and  to  social 
unrest. 

The  instincts  of  zvorkmanship  and  of  self-expression  repressed  by 
modern  industry — The  significance  of  all  this  for  industrial  psychology 
lies  in  the  fact  that  modern  industry  gives  the  laborer's  instincts  of 
workmanship  and  self-expression  little  scope,  and  that  consequently  a 
whole  working  class  may  be  found  to  be  suffering  from  repressed  desire 
and  balked  disposition.  A  balked  disposition,  if  strong,  not  infre- 
quently produces  a  highly  pugnacious  attitude.  Energy  which  would 
normally  be  expended  in  constructive  work  then  tends  to  find  release 
in  disputation  and  conflict. 

Two  reasons  are  advanced  for  holding  that  modern  industry  does 
not  give  sufficient  scope  to  the  instincts  of  workmanship  and  self- 
expression.  In  the  first  place,  actual  industrial  processes  have  been 
reduced  very  largely  to  routine  tasks,  and  the  responsibility  thrown 
upon  most  workers  has  been  reduced  to  the  minimum.  With  the  wide- 
spread war-time  introduction  of  dilution — /.  e.,  the  substitution  of 
unskilled  machine  tenders,  etc.,  for  skilled  workers — the  laborer's 
responsibility  and  chance  to  put  himself  into  his  work  are  still  further 
reduced.  There  is  no  need  to  dwell  upon  this  fact,  for  students  of  the 
labor  problem  have  again  and  again  alluded  to  its  significance.  In  the 
second  place,  the  instinct  of  self-eivpression  is  violated  by  the  autocratic 
administration  of  industrial  establishtncnts.^  It  is  unreasonable  to  sup- 
pose that  men  accustomed  to  political  self-government  will  ever  be 
content  without  some  measure  of  self-government  in  their  daily  work. 
Unless  factory  administration  is  so  arranged  that  the  workmen  have 
voice,  at  least  a  consultative  voice,  in  co-operation  with  the  representa- 
tives   of    the    employers,    in    the    management    of    all    the    conditions 

»  See  Wallas,  "The  Great   Society.'* 

•See   Holt.   "The   Freudian   Wish." 

•On  the  importance  of  instinct  and  repressed  desires  in  industrial  psychology  see; 
Montague  Ferry.  "Chasing  the  40%,"  in  H)0%  the  EfHcicncv  Magacinc.  Nov..  1917.  pp.  41  50: 
Garton  Foundation.  Memorandum  on  the  Industrial  Situation  after  the  War,  London.  1916, 
reprinted  by  the  Emergency  Fleet  Corporation.  Philadelphia.  1918;  R.  F.  Hoxie.  Scientific 
Management  and  Labor,  1916;  Helen  Marot,  Creative  Impulse  in  Industry,  1918;  C.  H. 
Parker,  "Motives  in  Economic  Life,"  in  American  Economic  Review  Supplement,  March, 
1918;  Ordway  Tead.  Instincts  in  Industry,  1918;  Thorstein  Veblen,  The  Instinct  of  Work- 
manship, 1918,  ch.  VII:  R.  B.  Wolf,  The  Creative  Worker,  an  address  delivered  before  the 
Technical   Association  of  the   Pulp  and   Paper   Industry,    Dayton,   Ohio,   May    16,   1918. 

26 


pertaining  to  labor  in  the  factory,  we  may  be  fairly  sure  that  unrest  and 
discontent  will  continue  to  exist.    Not  only  will  there  be  balked  disposi- 
tions arising  fcom  the  obstructed  instinct  of  self-expression,  but  a 
repression  of  the  desires  and  habits  of  self-government  arising  from 
our  political   democracy — attitudes   which   are  carried  over  into  the 
industrial  realm  only  to  find  their  outlet  dammed  by  the  employers' 
unwillingness  to  countenance  any  measure  of  democracy  in  the  factory. 
Production  managers  make  all  the  physical  arrangements  of  the 
plant,  with  little  or  no  personal  conference  with  the  employees.     Wage 
rates,  hours  of  labor,  and  working  conditions  are  fixed  either  in  an 
autocratic  manner,  in  which  the  individual  laborer  is  approached  in 
the  take-it-or-leave-it  spirit,  or  are  the  result  of  formal  conferences  for 
collective  bargaining  between  the  employer  and  the  higher  representa- 
tives of  organized  labor,  with  whom  the  rank  and  file  come  into  little 
direct  contact.     Men  are  not  uncommonly  hired  and  fired — where  the 
unions  are  not  strong— without  hearing  or  assigned  reason.     Changes 
in  process  which  may  involve  the  discharge  or  reduction  of  wages  of  a 
large  number  of  employees  are  introduced  without  consultation  with 
those  most  concerned.     All  these  things  are  done  on  the  old  legal  and 
economic  theory  that  a  man's  business  is  his  own  to  handle  as  he  sees 
fit.'     It  should  be  fairly  evident  that  this  theory  tacitly  regards  the 
workmen  as  entitled  to  no  more  regard  than  the  material  equipment 
of  the  plant.     It  neglects  the  human  factor  in  industry.     Probably  few 
employers  would  admit  that  the  worker  has  a  shadow  of  vested  inter- 
est in  his  job,  even  though  upon  his  job  depends  his  own  livelihood  and 
the  life  of  his  family,  although  it  has  become  a  conventional  and  legal 
truism  that  the  investor  is  entitled  to  a  ''fair  rate  of  return"  on  his 
money,  and  that  changes  in  law  or  social  organization  must  be  made 
with  due  reference  to  this  vested  interest.     Only  in  the  abnormal  con- 
ditions involved  in  conscription  and  in  demobilization  of  citizen  armies 
do  we  find  any  tendency  to  the  notion  that  the  worker  has  a  vested 
right  to  his  work.     It  is  not  our  purpose  to  argue  that  it  is  possible  to 
give  legal  recognition  to  any  such  vested  interest  of  the  worker,  even 
should  it  be  admitted  to  exist.     It  should  be  pointed  out,  hoivever,  that 
the  worker  does  have  a  vested  interest,  in  the  psychological  sense  of  the 
term,  in  his  job,  and  that  failure  to  recognize  this  results  in  repressed 
desires  and  balked  dispositions  which  play  no  inconsiderable  part  in  the 
causation  of  industrial  unrest  and  inefficiency  in  production. 

K*.o.'  'A^"'a""facturer  tries  to  tell  a  conventional  world  that  he  resists  the  closed  shop 
Decause  it  is  un-American,  loses  him  money,  or  is  inefficient.  A  few  years  ago  he  was  more 
fViri?,,,'^  k"»  *  A^'^  TT^  ^^"-"^  '■"'2  .^'^  business  as  he  wished  and  would  allow  no  man  to 
r^vnll^.'^i  M°  ^°-  c"'^  instinct  of  leadership,  reinforced  powerfully  by  his  innate  instinctive 
revulsion   to  the   confinement   of  the  closed   shoo,   gave   the  true   stimulus.      His   opposition   is 

£7±°^^''^''  "•"'  I'^i'^,'  -^^';^.'^°\  "•  ^^'^^''  "Motives  in  Economic  Life,"  °n  5m7rL» 
hconomtc  Renew  Supplement,   March,    1918,   p.   218. 

27 


III 


Rs'^ar-' 


.    2.    The  Psychology  of  Industrial  Unrest 

All  unrest  being  due  to  thwarted  desires  and  repressed  instincts, 
it  follows  that  the  causes  of  industrial  unrest  may  be  stated  in  psycho- 
logical  terms.  Unrest  arising  from  what  the  workman  regards  as 
insufficient  wage  is  usually  due  to  unsatisfied  desires  for  the  attainment 
and  maintenance  of  a  standard  of  living — physical  and  social — above 
that  which  his  actual  wages  will  support.  In  this,  desires  for  self- 
expression,  distinction,  and  recognition  involve  imitation  and  emulation 
of  those  who  set  the  standards  of  repute.  The  wage  level,  together 
with  the  hours  of  work,  thus  occupies  a  strategic  position  in  the  deter- 
mination of  the  worker's  phychology,  because  upon  the  amount  of  his 
wage  is  determined  in  a  large  measure  the  spiritual  level  of  his  exis- 
tence. It  would  be  an  error,  however,  as  already  suggested,  to  assume 
that  raising  wages  and  shortening  hours  of  labor  would  remove  all  th^ 
important  causes  of  industrial  unrest.  There  would  still  remain 
unsatisfied  desires  for  self-expression  and  for  a  measure  of  self-govern- 
ment, without  which  self-expression  is  impossible.  It  is  not  to  be 
supposed  that  all  workmen  want  is  high  wages.  From  a  mere  mone- 
tary point  of  view,  employers  do  well  to  recognize  that  there  are  other 
powerful  motives  for  honest  and  efficient  work,  and  that  to  the  extent 
to  which  these  motives  can  be  brought  into  play  in  personal  interest  in 
the  work  in  hand  and  in  community  interest  in  factory  organization 
and  functions,  individual  restlessness  and  the  industrial  unrest  to  which 
it  tends  will  be  diminished,  and  peace  and  efficiency  attained,  possibly 
at  a  lower  wage  than  would  otherwise  be  feasible.  In  other  words, 
it  is  possible  that  if  workers  had  more  voice  in  the  government  of  the 
intimate  details  of  industry  they  would  make  fewer  demands  for 
impossible  wage  terms. 

Development  of  hostile  community  instincts — Attention  may  here 
be  called  to  the  gregarious  instinct  alluded  to  above.  This  expresses 
itself  in  the  sense  of  being  one  of  a  community  in  which  sympathetic 
understanding  and  confidence  exists  and  in  which  a  friendly  square 
deal  is  expected  and  maintained  as  a  matter  of  course.  Stranger  groups 
always  maintain  a  more  or  less  suspicious,  if  not  hostile,  attitude  toward 
each  other,  and  co-operation  between  them  is  difficult  to  obtain.  More 
powerful  than  differences  of  economic  interest  in  keeping  groups  from 
developing  mutual  understanding  and  co-operation  are  differences  of 
language,  which  render  communication  difficult.  Difficulty  of  com- 
munication, lack  of  understanding,  and  absence  of  facilities  for  mutual 
action  repress  the  instincts  of  sympathy  which  might  otherwise  develop 
in  the  relation  between  groups,  and  allow  the  grow^th  of  pugnacity  and 
group  egotism  or  class  consciousness.  The  more  this  develops  the 
harder  it  is  to"  restore  sympathetic  relations.     Illustrations  of  this  fact 

28 


can  be  found  in  every  conflict  between  labor  and  capital.  Employers 
develop  a  community  spirit  of  their  own  and  labor  develops  either  a 
union  spirit,  or  a  class  consciousness  with  a  fanatical  adherence  to  the 
doctrine  of  class  conflict.  To  the  extent,  therefore,  that  machinery 
is  not  provided  for  intimate  contact  between  the  immediate  represen- 
tatives of  labor  and  those  of  the  employer,  the  two  isolated  community 
instincts  tend  to  develop  an  attitude  of  hostility.  The  remedy  is  to  be 
foiuid  in  enlargement  of  view  and  understanding,  in  the  assimilation 
of  the  two  communities  through  joint  discussion  and  conference,  not 
too  formal  in  character.  In  other  words,  employer  and  employee  must 
learn  to  speak  the  same  language.  They  will  never  learn  to  do  this 
until  the  employer  becomes  keenly  conscious  of  the  worker's  demand 
for  self-government  in  industry. 

Lack  of  confidence — The  Commission  of  Inquiry  into  Industrial 
Unrest,  in  its  report  submitted  to  the  British  Ministry  of  Munitions  in 
1917,  finds  that  the  psychological  causes  of  unrest  lie  in  lack  of  con- 
fidence. Many  of  the  causes  given  in  the  reports  from  geographical 
divisions  are  merely  manifestations  of  this.  It  ''shows  itself  in  the 
feeling  that  there  has  been  inequality  of  sacrifice,  that  the  Government 
has  broken  solemn  pledges,  that  trade  union  officials  are  no  longer  to 
be  relied  upon,  and  that  there  is  a  woful  uncertainty  as  to  the  indus- 
trial future."^  Allusion  is  here  made  to  the  workers'  distrust  both  of 
the  Government  and  of  the  trade  unions.  "The  feeling  in  the  mind  of 
the  workers  that  their  conditions  of  work  and  destinies  are  being 
determined  by  distant  authority  oier  which  they  have  no  influence 
requires  to  be  taken  into  consideration,  not  only  by  the  -Government, 
but  by  the  unions  themselves."-  Through  the  body  of  the  Report, 
especially  where  the  commissioners  deal  with  the  works  committee  idea, 
are  scattered  a  number  of  allusions  to  the  need  of  co-operative  plant 
government  as  an  essential  aid  in  the  establishment  of  industrial 
confidence. 

Summary — The  trend  of  our  discussion  thus  far  has  been  as 
follows : 

(a)  Production  is  a  process  involving  co-operation  between  phys- 
ical and  psychical  factors;  the  factory,  as  a  productive  unit,  is  a 
co-operative  organization. 

(b)  Its  productivity  depends  upon  the  efficiency  of  its  organization 
and  management. 

(c)  This,  in  turn,  depends  upon  the  proper  recognition  and  hand- 
ling not  only  of  the  physical,  but  more  especially  of  the  human  factors. 

'United    States   Bureau  of  Labot   Statistics,   Bulletin    No.=  Z37,  p.    12.  ' 

29 


««i« iiiiiiiiiiii iiiMliriiM 


(d)  Effective  co-operation  is  never  secured  between  persons  or 
classes  who  are  indifferent,  sore,  or  hostile  toward  one  another,  or  with 
people  who  are  laboring  under  chronic  balked  dispositions. 

(c)  Soreness,  suspicion,  and  hostility,  are  likely  to  develop  where 
the  natural  desire  for  self-government,  whether  in  civic  life  or  in 
industry,  is  denied. 

(/)  Employers  must  expect  continued  demand  on  the  part  of  labor 
for  a  larger  share  in  the  product  of  industry ;  labor  when  thoroughly 
organized  to  use  its  political  power,  can  either  force  upon  industrial 
society  its  definition  of  a  square  deal,  or  for  the  time  being  destroy  all 
industrial  efficiency,  if  forced  into  syndicalist  philosophy  and  methods. 

(g)  While  a  permanent  increase  in  real  wages  nuist  be  granted, 
employers  must  not  rely  too  much  upon  wage  increases,  reductions  of 
hours,  etc.,  nor  upon  improvement  in  working  conditions  brought  about 
autocratically — for  instance,  paternally  conceived  and  imposed  "indus- 
trial betterment"  or  "welfare"  schemes — to  allay  discontent ;  for  indus- 
trial unrest  is  due  also,  and  in  no  small  degree,  to  the  desire  of  the 
working  man  for  a  recognition  of  his  voice  and  personality  in  plant 
management. 

3.    The  Demand  for  Industrial  Democracy 

The   real  content   of  democracy — A   rational   democracy    holds: 

(1)  That  no  human  individual  should  be  regarded  primarily  as  a 
means  to  the  fulfillment  of  the  purposes  or  desires  of  some  other 
individual ; 

(2)  that  no  class  is  to  be  regarded  as  the  means  to  the  interests 
of  another  class  as  end ; 

(3)  that  opportunity,  and  so  far  as  opportunity  is  dependent  upon 
them,  material  wealth  and  income  should  be  distributed  in  proportion 
to  capacity  and  willingness  to  use  them  for  the  collective  good,  and 

(4)  that  to  secure  the  operation  of  these  principles  all  forms  and 
devices  of  autocracy,  both  in  political  life  and  in  industry,  must  give 
way  to  government  and  control  by  the  people  as  a  whole. 

Application  of  these  principles  to  the  industrial  situation — Now 
if  we  apply  these  principles  to  the  interpretation  of  the  industrial  situa- 
tion, what  do  we  find?  We  find,  to  put  the  matter  baldly  and  without 
the  refinement  of  the  qualifications  which  adequate  presentation  of  the 
subject  would  require,  that  the  employer,  generally  speaking,  regards 
the  laboring  man  simply  as  a  necessary  means  to  the  productive  process. 
Fortunately  this  attitude  is  undergoing  swift  modification,  but  on  the 
part  of  a  certain  type  of  employer  it  is  still  altogether  too  prevalent. 
Two  influences  are  bringing  about  a  rapid  change  in  attitude.     In  the 

30 


first  place  employers  are  discerning  more  clearly  the  meaning  of  loyalty, 
and  now  perceive  that  this  spirit  cannot  be  obtained  through  the  old 
autocratic  and  legalistic  attitudes.  Secondly,  there  is  more  general 
recognition  of  the  fact  that  political  democracy  without  a  measure  of 
industrial  self-government  is  somewhat  hollow.  The  fact  that  American 
working  men  have  been  fighting  in  Europe  to  make  the  world  safe 
for  democracy  doubtless  helps  to  suggest  the  ideal  of  a  more  pervading 
democracy  at  home.  Consistency,  if  nothing  else,  will  cause  us  to 
consider  the  possible  reflections  of  American  soldiers  returning  to 
industrial  life. 

Having  had,  as  a  necessity  of  war  training,  their  instinct  of  pug- 
nacity awakened,  will  the  industrial  conditions  to  which  they  return 
give  scope  to  this  instinct  to  the  detriment  of  production  and  danger 
to  industrial  peace,  or  will  employers  grasp  the  situation  and  provide 
for  the  submergence  of  the  conflict  instinct  in  a  community  spirit  which 
shall  be  provided  for  by  some  machinery  of  industrial  democracy  within 
each  manufacturing  establishment,  if  not  within  industries  as  a  whole? 
Upon  the  answer  to  this  question  hangs  no  small  part  of  the  social  and 
economic  destinies  of  our  country  in  the  next  few  years. 

The  content  of  industrial  democracy — The  content  of  industrial 
democracy  is  large  and  elastic.  Ethically  it  means  a  "square  deal"  in 
wages  and  working  conditions.  What  a  square  deal  in  wages  is  no 
living  man  can  say,  definitely.  The  irreducible  minimum  is  a  "living 
wage" — supposing  that  can  be  defined ;  but  it  is  a  certainty  that  labor 
will  not  consider  that  minimum  a  fair  wage.  Nor,  possibly,  is  there 
any  justifiable  economic  or  ethical  theory  which  makes  it  so.  Labor 
will  continue  to  demand,  with  ever  greater  solidarity  and  cogency, 
collective  bargaining  with  regard  to  wages,  hours,  working  conditions, 
and  all  those  matters  which  mutually  affect  employers  and  employees 
and  upon  which  selfish  interests  conflict.  Whatever  may  be  decided  to 
be  a  fair  wage  and  just  working  conditions  will  not  stay  decided  or 
really  be  decided  unless  worked  out  in  joint  man-to-man  conference 
between  the  representatives  of  the  two  sides.  This  is  the  essence  of 
industrial  democracy — a  machinery  and  a  spirit  in  which  all  concerned 
shall  have  effective  voice  in  matters  which  concern  aU.  This  necessarily 
involves  continuous  industrial  peace — which  cannot  be  secured  by  any 
conciliation  or  arbitration  scheme  thus  far  proposed  or  tried  out.  Such 
schemes  settle  disputes  only  after  they  arise.  Industrial  democracy — 
the  rational  government  of  collective  concerns  collectively — involves 
the  settlement  of  disputes  before  they  arise  (to  use  an  Irish  bull).  In 
other  words,  industrial  democracy  would  aim  to  reduce  to  a  minimum 
the  development  and  the  intensity  of  hostile  attitudes,  and  to  put  in 
their  place  the  effective  will  to  co-operate. 

31 


yma 


M. 


\ 


4.  Democracy  and  Responsibility 
Granting  the  desirability  of  realizing  these  ideals,  the  practical 
question  arises :  Can  industrial  self-government  or  eo-operatize  man- 
agement be  developed  zvithout  destroying  industrial  effieieney  by 
deeentridizing  responsibility  and  inrtually  tying  the  hands  of  the  man- 
agement f  If  democracy  means  divided  or  uncertain  responsibility  in 
administration,  it  spells  inefficiency.  This  fact  is  generally  recognized 
and  may  be  taken  as  definitely  established.  Under  such  conditions  it 
is  difficult  or  impossible  for  the  public  to  locate  responsibility  for  short- 
comings :  and  that  baffling  process  known  in  poker  and  governmental 
circles  as  ''passing  the  buck"  becomes  the  order  of  the  day. 

Political  analogies — It  is  well  to  recall  here  the  fact  that  the  essen- 
tial problem  in  American  municipal  government  has  been  that  of  secur- 
ing democracy  and  responsibility.  Until  the  commission  form  of  city 
government  was  instituted,  there  was  no  way  of  fixing  administrative 
responsibility ;  dishonesty  and  inefficiency  were  consequently  inevitable. 
The  commission  plan  improved  matters  greatly  because  it  centered 
responsibility  in  a  small  committee  instead  of  dividing  it  between  a 
bi-cameral  council,  a  more  or  less  powerless  mayor,  and  a  number  of 
council  committees.  But  still  the  responsibility  was  divided,  and  to 
remedy  the  situation  the  city  manager  plan  was  proposed,  by  which  the 
responsibility  for  getting  things  done  is  centered  in  one  man,  while 
questions  of  policy  may  be  left  to  a  commission  and  ultimately  to  the 
electorate  at  large.  Under  either  the  commission  plan  or  the  manager 
plan,  or  some  combination  of  the  two,  publicity  is  a  sine  qua  non  of 
success.  It  is  a  truism  which  w^e  cannot  outgrow,  that  any  system  can 
insure  efficiency,  in  the  largest  sense,  only  if  it  has  in  it  the  live  interest 
and  spirit,  and  over  it  the  watchfulness  of  the  whole  community.  In 
this  sense  responsibility  cannot  be  centralized.  "A  people  get  the  sort 
of  government  they  deserve."  The  whole  people  must  determine  the 
larger  policies  affecting  the  general  welfare,  and  leave  the  execution  of 
policies  decided  upon  to  their  authorized  representative  (manager  or 
commission).  The  wisdom,  breadth,  and  progressiveness  of  these 
policies  will  depend  upon  the  character,  temper,  and  ideals  of  the 
electorate,  not  primarily  upon  their  representatives. 

Administrative  responsibility  and  poliey-determining  functions — 
Applying  these  principles  to  industry,  we  are  led  to  the  following 
conclusions :  ^ 

(1)  Responsibility  for  the  execution  of  policies  and  for  the  admin- 
istration of  technical  detail  must  be  left  with  the  plant  management. 

(2)  Determination  of  policies  relating  to  the  commercial  end  of 
the  industry — purchase,  sales,  advertising,  financial  policy,  etc. — must 
ordinarily  be  left  to  the  responsible  representatives  of  the  owners  of 
the  plant.    There  may,  however,  be  exceptions  to  ih\s  statement.      ' 


(3)  Policies  which  bear  on  working  conditions,  wages,  and  any 
other  matter  affecting  the  interests  of  the  employees  should  not  be 
determined  upon  or  changed  until  the  employees  or  their  constitu- 
tionally chosen  representatives  have  passed  upon  them.  In  case  of 
difference  of  opinion  l^etween  employers  and  employees,  the  matter 
should  go  to  joint  conference. 

(4)  Publicity  will  be  as  beneficial  in  industrial  government  as  else- 
where. Even  where  the  final  authority  rests  with  the  management  and 
must  remain  with  it,  and  there  is  no  special  obligation  to  consult  the 
men,  the  employees  should  be  informed  of  what  is  being  done. 

(5)  Both  managers  and  men  must  arrive  at  a  larger  sense  of 
responsibility,  not  only  toward  each  other,  but  tow^ard  society  at  large. 
It  is  too  much  to  expect  that  under  a  competitive  system  in  which 
production  is  for  profits  primarily  and  for  social  welfare  only  in  so  far 
as  profits  result  therefrom,  either  employers  or  employees  will  be  quick 
to  come  to  this  social  point  of  view  and  this  larger  conception  of  indus- 
trial responsibility.  But  there  are  encouraging  indications  that  we  are 
gradually  approaching  such  a  viewpoint,  and  our  approach  will  be 
hastened  by  a  well-grounded  fear  of  industrial  warfare  and  friction 
which,  if  allowed  to  develop,  will  destroy  our  chances  to  meet 
effectively  the  competition  of  foreign  producers  in  the  open  markets 
of  the  world. 

Bearing  in  mind  the  meaning  and  the  necessity  of  this  newer  and 
broader  sense  of  responsibility,  and  also  the  desirability  of  publicity 
and  conference  on  all  matters  which  affect  labor  in  any  way,  we  cannot 
escape  the  conclusion,  from  our  experience  with  the  older  type  of 
political  democracy,  that  it  would  be  unreasonable,  under  our  present 
social  organization,  to  propose  a  form  of  industrial  democracy  w^hich 
would  take  away  from  the  plant  manager  his  final  responsibility  for 
seeing  that  policies,  once  decided  upon,  are  carried  out.  We  can  have, 
however,  without  impairing  responsibility,  joint  discussion  of  policies 
and  methods  in  production  and  of  all  those  multifarious  matters  which 
affect  the  interest  of  the  employees  as  well  as  that  of  the  employer. 
With  extension  of  education  and  experience,  and  the  growth  of  con- 
fidence, many  matters  which  the  management  now  considers  to  be 
wholly  within  the  sphere  of  its  own  autocratic  functions  can  safely  and 
profitably  be  left  to  the  control  of  the  workers  themselves. 

Where  the  dividing  line  of  responsibility  and  of  function  between 
manager  and  representatives  of  the  employees  will  fall,  or  how  much 
power  can  be  turned  over  to  the  employees,  it  is  impossible  to  say 
definitely.  These  matters  will  vary  from  industry  to  industry,  from 
locality  to  locality,  and  with  the  character  and  education  of  the  working 
force.     It  goes  without  saying  that  with  an  ignorant  and  illiterate  mass 

33 


ji  ■"" 


of  workers  industrial  representation  cannot  go  as  far  as  among  a 
higher  class  of  employees.  (The  work  of  the  Loyal  Legion  of  Loggers 
and  Lumbermen  in  the  Pacific  Northwest,  however,  seems  to  indicate 
that  even  among  what  has  been  considered  the  roughest  and  most 
reckless  class  of  laborers  remarkable  results  may  be  obtained  from 
co-operative  management  under  proper  auspices.)  There  may  be  every 
gradation  up  to  a  full-fledged  co-operative  system  in  which  the  workers 
themselves  own  the  plant  and  hire  managers  and  technical  experts  to 
carry  out  their  policies.  Practical  proposals  to  meet  the  present  situa- 
tion cannot,  however,  be  based  upon  the  idea  that  any  significant  change 
in  the  ownership  of  industrial  plants  is  to  take  place.  We  must  meet 
the  situation  as  it  is. 

It  is  of  the  utmost  importance  to  a  clear  understanding  of  co-opera- 
tive management  that  the  works  committees  and  industrial  councils 
with  which  these  pages  have  to  deal  should  in  no  way  be  confused  with 
the  Russian  shop  committees^  or  the  workmen's  councils  advocated  by 
the  syndicalists  and  the  L  W.  W.  agitators. 

Co-operative  management,  involving  no  transformation  in  the 
ownership  of  industrial  equipment,  and  no  abolition  of  the  final  respon- 
sibility of  the  present  owners  and  managers  of  industry,  but  at  the  same 
time  giving  the  worker  a  real  voice  in  industrial  government,  may  be 
regarded  not  only  as  an  avenue  to  a  square  deal  but  as  an  insurance 
against  the  spread  of  ideals  and  demands  which  would  threaten  both 
the  present  ownership  of  industry  and  the  measure  of  productive 
efficiency  and  order  which  we  have  achieved  under  ''capitalistic'' 
ownership. 

We  may  be  very  sure  that  it  was  no  adherence  to  socialist  or  Bol- 
shevistic ideals  of  industrial  ownership  and  control  which  led  the  British 
Government,  under  the  leadership  of  Lloyd  George,  to  appoint  a  Recon- 
struction Committee  and  under  it  a  Sub-Committee  on  Relations 
between  Employers  and  Employed,  and  later  to  adopt  this  sub-commit- 
tee's recommendations  looking  toward  the  establishment  of  works  com- 
mittees and  national  joint  industrial  councils  in  every  organized  English 
industry.  It  is  probable,  the  rather,  that  rational  moderates  saw  in 
the  proposals  of  the  Whitley  Committee,  and  in  the  similar  proposals 
of  the  Garton  Foundation,  the  Industrial  Reconstruction  Council,  the 
National  Alliance  of  Employers  and  Employed,  etc.,  a  fair  and  essential 
step  in  industrial  reconstruction,  necessary  on  the  one  hand  as  a 
measure  of  a  rational  industrial  democracy  and  a  common  sense  square 
deal,  and  on  the  other  as  a  social  modification  to  be  made  betimes  to 
preserve  the  nation  from  the  flood  of  Bolshevist  extremism  which  was, 
and  is,  threatening  the  world. 

*  For  an  account  from  a  socialist  viewpoint  of  these  Russian  shop  committees  after 
the  former  owners  abandoned  their  plants,  see  "The  Structure  of  the  Soviet,"  by  John  Reed, 
in   the   Liberator,   November,    1918,  pp.   35-37. 

34 


Chapter  III.    The  Whitley  Committee  Recommendations 


The  suggestion  for  the  establishment  of  works  committees  in 
American  industrial  plants  and  joint  industrial  councils  in  American 
industries  does  not  come  from  the  thin  air  of  idealistic  theorizing. 
As  a  starting  point  we  have:  (a)  a  very  considerable  body  of  concrete 
and  successful  experience  with  such  committees  in  English  industry; 

(b)  the  beginnings,  here  and  there,  of  experience  with  works  com- 
mittees, or  analogous  organizations,  in  American  establishments,  and 

(c)  the  careful    inquiry    and   far-reaching   recommendations   of   the 
Whitley  Committee. 

L    The  Whitley  Committee 

The  British  Government's  Reconstruction  Committee  appointed  in 
November,  1916,  a  "Sub-Committee  on  Relations  between  Employers 
and  Employed."    This  came  to  be  known  as  the  Whitley  Committee. 

Instructions — The  instructions  to  the  Sub-Committee  were: 

(1)  To  make  and  consider  suggestions  for  securing  a  per- 
manent improvement  in  the  relations  between  employers  and 
workmen. 

(2)  To  recommend  means  for  securing  that  industrial  con- 
ditions aflPecting  the  relations  between  employers  and  workmen 
shall  be  systematically  reviewed  by  those  concerned,  with  a  view 
to  improving  conditions  in  the  future. 

Membership — The  membership  of  the  Committee,  Including  as  it 
did  the  well-known  economist,  Professor  S.  J.  Chapman,  and  Mr.  J.  A. 
Hobson,  the  leading  English  student  of  industrial  problems ;  Mr.  J.  R. 
Clynes,  Mr.  Robert  Smillie,  and  Miss  Mona  Wilson,  representing 
organized  labor;  and  Sir  George  J.  Carter,  Sir  Maurice  Levy,  Sir 
Thomas  Ratcliflfe-Ellis,  and  Sir  Gilbert  Claughton,  representing  capital 
and  employers,  is  proof  of  the  representative  character  of  the  Com- 
mittee. The  Chairman,  the  Right  Hon.  J.  H.  Whitley,  has  been  a 
member  of  Parliament  from  Halifax  since  1900,  and  is  Chairman  of 
Committees  of  the  House  of  Commons.  He  is  also  senior  partner  of 
S.  Whitley  &  Co.,  cotton  spinners.^ 

*  The  full  membership  at  the  time  of  the  issuance  of  the  Interim  Report  was  as  follows: 
The  Right  Hon.  J.  H.  Whitley,  M.  P.,  Chairman. 

Mr.   F.   S.   Button.  Miss  Susan   Lawrence. 

Sir  George  J.   Carter,  K.   B.   E.  Mr.  J.   J.    Mallon. 

Prof.   S.   J.    Chapman,    C.    B.    E.  Sir  Thos.   R.   Ratcliffe-Ellis. 

Sir    Gilbert    Claughton,    Bart.  Mr.   Robert   Smillie. 

Mr.   J.   R.   Clynes,   M.   P.  Mr.  Allan   M.   Smith. 

Mr.   J.   A.  HoBsoN.  Miss  Mona  Wilson. 
Secretaries:      Mr.   H.   J.   Wilson,   C.   B.   E.,   Ministry  of  Labor, 

Mr.  Arthur  Greenwood,  Ministry  of  Reconstruction. 

,«,     Later   Mr.    F.    N.    Hepworth,   Sir   Maurice   Levy,    Bart.,    M.    P.,   and   Mr.    D.    R.    H. 
Williams  were  added. 

35 


teSe     if 


\ 


^ 


1 


Causes  leading  to  the  appointment  of  the  Compnittee— The  causes 
leading  up  to  the  appointment  of  the  Committee  lay  chiefly  in  the  grow- 
ing unrest  of  labor  and  in  the  conviction  on  the  part  of  leading  men 
that  English  industry,  in  order  to  meet  the  tremendous  competition  to 
which  it  would  undoubtedly  be  subjected  after  the  war,  would  have 
to  have  peace  and  co-operative  good  feeling  between  employers  and 
employees,  as  a  prime  requisite  to  efficiency. 

The  Carton  Foundation— During  the  summer  of  1916  the  Garton 
Foundation  circulated  its  "Memorandum  on  the  Industrial  Situation 
after  the  War"  among  employers,  representatives  of  labor,  and  public 
parties.  It  was  then  published,  in  ( )ctol>er,  1916,  in  the  light  of  the 
criticisms  received.'  This  Memorandum  is  a  remarkable  document — 
a  revelation  of  the  swift  change  of  sentiment  and  the  rapid  development 
of  broad  demcx'ratic  ideals,  on  the  part  of  even  conservative  classes, 
jn. matters  of  industrial  organization.  The  Trustees  of  the  Garton 
F,QHndation  are  the  Rt.  Hon.  A.  J.  Balfour.  M.  P.,  the  Rt.'Hon.  Vis- 
coimt  Esher,  G.  C.  R..  and  Sir  Richard  Garton.  As  the  Preface 
explains : 

This  Memorandum  is  the  work  of  a  group  of  men  who  came 
together,  at  the  instance  of  the  Garton  I'^oundation,  for  the  purpose 
of  discussing  the  industrial  situation  in  this  country  at  the  close 
of  the  present  war.  The  group  included  men  of  very  varied  views, 
in  touch  with  both  the  capitalist  and  employing  classes  and  organ- 
ised labor,  as  well  as  with  financial,  economic,  and  administrative 
circles.  As  a  result  of  their  inquiries  and  of  correspondence  and 
discussion  with  representatives  of  all  parties  to  industry,  they 
became  convinced  that  the  return  from  war  to  peace  conditions 
would  inevitably  involve  great  difficulties,  which  might  result,  if 
not  carefully  and  skilfully  handled,  in  a  grave  outbreak  of 
industrial  disorder. 

In  its  final  section,  on  'The  Fundamental  Problem,"  the  Meno- 
randum  makes  extensive  recommendations  for  co-operative  manage- 
ment through  industrial  councils  and  works  committees. 

This  Memorandum,  together  with  discussion  from  which  it  arose 
and  which  it  occasioned,  was  undoubtedly  a  powerful  factor  lead- 
ing to  the  formation  of  the  Whitley  Committee,  and  the  Committee 
perhaps  took  from  it  the  suggestion  for  its  recommendations  for 
industrial  councils  and  works  conuuittees. 

Industrial  councils  in  building  trades — .\ccording  to  Mr.  C.  V. 
Cnrle^s^    the    Whitley    Committee    received    the    suggestion    for    its 

*  l!y    Harrison    &    Sons.    St.    Martins    Lane.    London.    W.    C.      Reprinted    by    the    United 
States   shipping   Board    Emergency   Fleet   Corporation,   Philadelphia,   1918. 

-  "The    Whitley    Scheme,   a   Step   Toward    Democratizing   Industrial    Relations,"    Montreal, 
1918.      Reprint   of  a  paper  read   before  the  Canadian   Mining  Institute. 

36 


recommendations  for  industrial  councils  and  works  committees  from  a 
proposal  made  to  the  unions  in  the  building  trades  by  Mr.  Malcolm 
Sparkes,  a  building  trades  employer  of  London.  In  the  summer  of 
1914  the  federated  employers  and  organized  employees  in  the  London 
building  trades  had  a  serious  and  costly  disagreement  which  reached 
a  point  where  a  widespread  lockout  and  strikes  involving  a  number  of 
other  trades  seemed  inevitable.  The  outbreak  of  the  war  occasioned 
an  agreement  with  reservation  of  some  points  to  be  settled  at  a  more 
convenient  time  later.  At  this  time  Mr.  Sparkes  began  to  think  out 
some  method  by  which  the  useless  and  wasteful  antagonism  between 
employer  and  employee  might  be  overcome  and  **the  underlying  unity 
and  good  will  in  the  country's  service  displayed  by  both  might  be  made 
operative  in  times  when  the  need  for  it  was  less  dramatic  and  con- 
spicious,  but  hardly  less  urgent."  In  1916  a  new. crisis  developed  in 
the  London  building  trades  and  Mr.  Sparkes  now  presented  a  formal 
plan  for  industrial  representation  in  a  ''National  Industrial  Parliament 
for  the  Building  Industry."  ^ 

Mr.  Sparkes 's  plan  involved  not  only  the  establishment  of  a  national 
industrial  parliament  or  council  for  the  building  industry,  but  also  joint 
district  boards  to  be  set  up  by  the  National  Federation  of  Building 
Trades  Employers  and  the  National  Associated  Building  Trades 
Council  for  the  discussion  of  the  proposals  of  the  industrial  parliament 
and  the  furnishing  of  local  facts  and  statistics  as  required.  The  plan 
further  contemplated  the  establishment  of  works  committees  in  par- 
ticular shops.  It  appears  that  the  painters  and  decorators  adopted 
Mr.  Sparkes'  proposal,  at  least  in  part.  Their  experience  with  indus- 
trial councils  already  extends  over  a  year  and  is  said  to  have  proved 
their  practicability.  The  district  councils  in  this  trade  have  met  regu- 
larly under  the  masters'  and  the  men's  chairmen  alternately  and  have 
successfully  carried  out  some  important  constructive  work  at  various 
centers  in  the  country,  besides  averting  some  disputes.- 

Early  in  1916  the  scheme  was  offered  by  Mr.  Sparkes  to  the  Lon- 
don Committee  of  Carpenters  and  Joiners,  who  strongly  approved  it 
and  sent  it  forward  to  their  national  executive.  It  was  fully  discussed 
by  the  national  council  of  these  trades,  and  unanimously  recommended 
to  the  National  Associated  Building  Trades  Council.  This  body  dis- 
cussed, printed,  and  circulated  it  among  the  twelve  affiliated  unions 
and  at  -a  conference  in  October  it  was  adopted  unanimously  by  22 
delegates  representing  the  national  executives  of  the  principal  trade 
unions.  In  November  the  Building  Trades  Council  voted  unanimously 
to  lay  the  scheme  before  the  National  Federation  of  Building  Trades 

K=*,l:\}  Memorandum  on   Self  Government  in  Industry  together  with  a  Draft  for  a  Builder's 
National   Industrial   Parliament.      London,    Harrison   &   Sons,    [1918.]      Pp.   28. 

=*  See  Corless,   "The  Whitley  Scheme,"  p.   5. 

37 


MM 


f\^'  •  I 


Causes  leading  to  the  appointment  of  the  Committee — The  causes 
leading  up  to  the  appointtnent  of  the  Committee  lay  chiefly  in  the  grow- 
ing unrest  of  lahor  and  in  the  conviction  on  the  part  of  leading  men 
that  English  industry,  in  order  to  meet  the  tremendous  competition  to 
which  it  would  undoubtedly  be  subjected  after  the  war,  would  have 
to  have  peace  and  co-operative  good  feeling  between  employers  and 
employees,  as  a  prime  requisite  to  efficiency. 

The  Carton  Foundation— During  the  summer  of  1916  the  Garton 
Foundation  circulated  its  "Memorandum  on  the  Industrial  Situation 
after  the  War"  among  employers,  representatives  of  labor,  and  public 
parties.  It  was  then  published,  in  October,  1916.  in  the  light  of  the 
criticisms  received.^  This  Memorandum  is  a  remarkable  document — 
a  revelation  of  the  swift  change  of  sentiment  and  the  rapid  development 
of  broad  democratic  ideals,  on  the  part  of  even  conservative  classes, 
jn. matters  of  industrial  organization.  The  Trustees  of  the  Garton 
F,QMndation  are  the  Rt.  Flon.  A.  J.  Balfour,  M.  P..  the  Rt.'Hon.  Vis- 
count Esher.  G.  C.  R.,  and  Sir  Richard  Garton.  As  the  Preface 
explains  : 

This  Memorandum  is  the  work  of  a  group  of  men  who  came 
t< 'gether,  at  the  instance  of  the  Garton  Foundation,  for  the  purpose 
of  discussing  the  industrial  situation  in  this  country  at  the  close 
of  the  present  war.  The  group  included  men  of  very  varied  views, 
in  touch  with  both  the  capitalist  and  employing  classes  and  organ- 
ised labor,  as  well  as  with  financial,  economic,  and  administrative 
circles.  As  a  result  of  their  inquiries  and  of  correspondence  and 
discussion  with  representatives  of  all  parties  to  industry,  they 
became  convinced  that  the  return  from  war  to  peace  conditions 
would  inevitably  involve  great  difficulties,  which  might  result,  if 
not  carefully  and  skilfully  handled,  in  a  grave  outbreak  of 
industrial  disorder. 

In  its  final  section,  on  ''The  Fundamental  Problem,"  the  Meno- 
randum  makes  e.xtensive  recommendations  for  co-operative  manage- 
ment through  industrial  councils  and  works  committees. 

1  his  Memorandum,  together  with  discussion  from  which  it  arose 
and  which  it  cKcasioned,  was  undoulitedly  a  powerful  factor  lead- 
ing to  the  formation  of  the  Whitley  Committee,  and  the  Cotumittee 
perhaps  took  from  it  the  suggestion  for  its  recommendations  for 
industrial  councils  and  works  committees. 

Industrial  councils  in  building  trades — According  to  Mr.  C.  V. 
Corless-    the    Whitley    Committee    received    the    suggestion    for    its 

>  By    Harrison    &    Sons.    St.    Martins    Lane.    London,    W.    C.      Reprinted    by    the    United 
States   .shipping   Board   Emergency   Fleet   Corporation,    Philadelphia,    1918. 

Thi-  Whitley  Scheme,  a  Step  Toward  Democratizing  Industrial  Relations,"  Montreal, 
1918.      Reprint  of  a  paper  read  biefore  the  Cana<lian   Mining  Institute. 

36 


recommendations  for  industrial  councils  and  works  committees  from  a 
proposal  made  to  the  unions  in  the  building  trades  by  Mr.  IMalcolm 
Sparkes,  a  building  trades  employer  of  London.  In  the  summer  of 
1914  the  federated  employers  and  organized  employees  in  the  London 
building  trades  had  a  serious  and  costly  disagreement  which  reached 
a  point  where  a  widespread  lockout  and  strikes  involving  a  number  of 
other  trades  seemed  inevitable.  The  outbreak  of  the  war  occasioned 
an  agreement  with  reservation  of  some  points  to  be  settled  at  a  more 
convenient  time  later.  At  this  time  Mr.  Sparkes  began  to  think  out 
some  method  by  which  the  useless  and  wasteful  antagonism  between 
employer  and  employee  might  be  overcome  and  "the  underlying  unity 
and  good  will  in  the  country's  service  displayed  by  both  might  be  made 
operative  in  times  when  the  need  for  it  was  less  dramatic  and  con- 
spicious,  but  hardly  less  urgent."  In  1916  a  new. crisis  developed  in 
the  London  building  trades  and  Mr.  Sparkes  now  presented  a  formal 
plan  for  industrial  representation  in  a  "National  Industrial  Parliament 
for  the  Building  Industry."  ^ 

Mr.  Sparkes's  plan  involved  not  only  the  establishment  of  a  national 
industrial  parliament  or  council  for  the  building  industry,  but  also  joint 
district  boards  to  be  set  up  by  the  National  Federation  of  Building 
Trades  Employers  and  the  National  Associated  Building  Trades 
Council  for  the  discussion  of  the  proposals  of  the  industrial  parliament 
and  the  furnishing  of  local  facts  and  statistics  as  required.  The  plan 
further  contemplated  the  establishment  of  works  committees  in  par- 
ticular shops.  It  appears  that  the  painters  and  decorators  adopted 
Mr.  Sparkes'  proposal,  at  least  in  part.  Their  experience  with  indus- 
trial councils  already  extends  over  a  year  and  is  said  to  have  proved 
their  practicability.  The  district  councils  in  this  trade  have  met  regu- 
larly under  the  masters'  and  the  men's  chairmen  alternately  and  have 
successfully  carried  out  some  important  constructive  work  at  various 
centers  in  the  country,  besides  averting  some  disputes.- 

Early  in  1916  the  scheme  was  ofifered  by  Mr.  Sparkes  to  the  Lon- 
don Committee  of  Carpenters  and  Joiners,  who  strongly  approved  it 
and  sent  it  forward  to  their  national  executive.  It  was  fully  discussed 
by  the  national  council  of  these  trades,  and  unanimously  recommended 
to  the  National  Associated  Building  Trades  Council.  This  body  dis- 
cussed, printed,  and  circulated  it  among  the  twelve  affiliated  unions 
and  at  a  conference  in  October  it  was  adopted  unanimously  by  22 
delegates  representing  the  national  executives  of  the  principal  trade 
unions.  In  November  the  Building  Trades  Council  voted  unanimously 
to  lay  the  scheme  before  the  National  Federation  of  Building  Trades 

Vo.-'  •^.^J^'V"'"^"''."'^  °"   ^^'^  Government  in   Industry  together  with  a  Draft  for  a  Builder's 
National    Industrial    Parliament.      London,    Harrison  &   Sons,    [1918.]      Pp    28.  «""<ler  s 

'See  Corless.   "The  Whitley  Scheme,"  p.   5. 

37 


^r^:  ^' .        t  --H 


■g^yjume  J"  B^  j»jr.  w  ■.  -;  Titf'?1iHI'''l 


\  \ 


Employers  and  asked  for  a  preliminary  conference  on  it.  It  is  signifi- 
cant that  the  trade  unions,  after  the  fullest  discussion,  decided  that 
the  scheme  was  entirely  feasible  and  voted  unanimously  to  endorse  it 
as  a  method  of  reducing  friction  and  securing  co-operative  effort  for 
the  common  good  of  the  industry.^ 

Convention  of  iron  and  steel  manufacturers — Still  another  impetus 
seems  to  have  come  from  the  convention  of  representatives  of  iron  and 
steel  firms  and  an  address  delivered  to  them  by  the  Prime  Minister  of 
Australia,  Mr.  Hughes,  then  (April,  1916)  visiting  England.  Repre- 
sentatives of  about  300  firms  passed  a  resolution  in  favor  of  bringing 
these  industries  together  in  a  strong  central  organization,  and  appointed 
a  committee  to  consider  what  should  be  the  nature,  scope,  and  object 
of  the  organization.  In  its  report  this  committee  later  pointed  out  that 
increased  production,  which  would  be  the  greatest  factor  in  national 
prosperity  after  the  war,  could  be  obtained  only  by  a  more  cordial 
co-operation  between  employers  and  employees.  At  the  outset,  the 
report  said,  any  organization  of  the  industries  should  be  prepared  to 
co-operate  with  labor. 

The  report  set  out  many  examples  of  the  questions  which  might 
have  to  t)e  dealt  with,  among  them  being  the  question  of  means  of 
giving  work  people  a  continuing  interest  in  the  industry  which  employs 
them,  and  the  question  whether  some  method  of  working  associations 
of  employers  and  employees  responsible  to  their  members  should  be 
adopted. 

The  committee  suggested  that  the  central  organization  should  be 
a  National  Advisory  Council  of  Industry,  consisting  of  a  body  of  elected 
representatives  of  employers  and  a  body  of  elected  representatives  of 
employees  who  might  meet  separately  or  jointly.  The  joint  meetings 
should  be  presided  over  by  a  Minister  of  Industry.  In  suggesting  the 
appointment  of  such  a  Minister,  the  committee  held  that  the  appointing 
of  an  individual  retaining  a  connection  with  either  the  employers'  or  the 
employees'  side  of  industry  would  be  undesirable,  as  would  be  the 
appointment. of  an  individual  having  only  political  or  legal  qualifica- 
tions. It  was  suggested  that  while  a  Minister  of  Industry  should  not 
be  a  permanent  official,  neither  should  his  appointment  or  retiral  be 
dependent  on  a  change  of  Government.  Local  councils,  the  report 
further  stated,  might  be  desirable  for  large  industrial  areas.- 

Whatever  suggestion  or  inspiration  the  Whitley  Committee 
received  from  the  Garton  Memorandum  or  from  the  movements  started 
by  Mr.  Sparkes  and  Mr.  Hughes,  it  is  evident  that  public  sentiment  was 
prepared  for  rec^ommendations  looking  toward  industrial  democracy  in 
some  form. 

*  See  "Industrial   Self  (iovernmcnt,"   United    States   Bureau  of   Labor   Statistics,   Monthly 
Labor    Review,    October,    1918,    pp.    54  61. 

'  London  Times,  December  6,   1916. 

38 


The  actual  appointment  of  the  Whitley  Committee  was  preceded  by 
conferences  between  the  Parliamentary  Committee  of  the  Trades  Union 
Congress  and  the  Employers'  Parliamentary  Committee,  so  that  all 
parties  and  classes  were  aware  of  the  importance  of  the  step.^ 

2.    Reports  of  the  Whitley  Committee 

The  Reports — The  Whitley  Committee's  first  Report — the  so- 
called  Interim  Report  - — was  drawn  up  in  March,  1917. 

It  proposed  a  three-fold  system,  comprising  works  committees, 
district  councils,  and  a  national  industrial  council,  in  each  industry  in 
which  employers  and  employees  were  sufficiently  well  organized  for 
the  purpose.  This  Report  met  w'ith  instant  recognition  and  interest. 
In  October,  1917,  the  Committee  submitted  a  ''Second  Report  on  Joint 
Standing  Industrial  Councils"  (Cd.  9002)  and  on  the  same  date  a 
"Supplementary  Report  on  Works  Committees"  (Cd.  9001).  The 
latter  gives  detailed  recommendations  for  the  establishment  of  w^orks 
committees.  Following  the  Second  Report,  which  made  recommenda- 
tions touching  on  the  establishment  of  national  councils  in  unorganized 
industries,  the  Minister  of  Reconstruction  and  the  Minister  of  Labor 
issued  a  "Joint  Memorandum  on  Industrial  Councils  and  Trade  Boards" 
(Cd.  9085),  explaining  the  Government's  objections  to  the  recommen- 
dations made  in  the  Second  Report.  Later  followed  a  Report  on  Con- 
ciliation and  Arbitration  (Cd.  9099),  and  a  Final  Report  (Cd.  9153). 

The  Whitley  plan — To  understand  the  Whitley  Committee's  recom- 
mendations, it  is  necessary  to  remember  that  English  industry  is  much 
more  highly  and  eflfectively  organized  than  is  American,  both  on  the 
side  of  labor  and  on  that  of  employers.  In  its  Interim  Report  the 
Committee  made  recommendations  for  thoroughly  organized  industries, 
reserving  recommendations  for  industries  wholly  or  in  part  unorganized 
to  its  Second  Report  on  Joint  Standing  Industrial  Councils. 

The  proposal  for  the  establishment  of  works  committees  is  only 
one  part,  and  perhaps  not  the  most  important  part,  of  the  Whitley  plan. 
The  plan  at  large  provides,  as  above  noted,  that  there  shall  be  estab- 
lished in  each  industry  in  which  trade  unions  and  employers'  associa- 
tions assure  eflfective  organization,  (a)  a  national  industrial  council,  {b) 
district  councils,  (r)  works  committees.  These  organizations  are  to  be 
representative  both  of  employers  and  employees.  Their  central  func- 
tion is  to  provide  facilities  for  conference  and  co-operation  between  the 
representatives  of  employers  and  employees  respectively. 

Recommendations  of  the  Interim  Report — The  Whitley  Com- 
mittee's recommendations  were  evidently  based  upon  the  assumption 

*  London   Times,    November   9,    1916. 

-  Reconstruction    Committee,    Sub-committee    on    Relations    between    Employers    and    Em- 
ployed:     Interim    Report    on    Joint    Standing    Industrial    Councils    (Cd.    8606). 

39 


^is..' 


l,V    "-.V.l  .T*.-^    —s'-^ftj.**^ 


> 


I 


that  the  national  industrial  councils  would  be  organized  before  the 
district  councils  and  that  they  would  be  a  logical  and  effective  influence 
toward  the  widespread  establishment  of  works  committees. 

In  tlie  well-organized  industries  one  of  the  first  questions  to  be 
considered  should  be  the  establishment  of  local  and  works  organi- 
zations to  supplement  and  make  more  effective  the  work  of  the 
central  bodies.  It  is  not  enough  to  secure  co-operation  at  the 
centre  between  the  national  organizations;  it  is  equally  necessary 
to  enlist  the  activity  and  support  of  employers  and  employed  in 
the  districts  and  in  individual  establishments.  The  national  indus- 
trial council  should  not  be  regarded  as  complete  in  itself ;  what  is 
needed  is  a  triple  organization  in  the  workshops,  the  districts,  and 
the  nation.  Moreover,  it  is  essential  that  the  organization  at  each 
of  these  three  stages  should  proceed  on  a  common  principle,  and 
that  the  greatest  measure  of  common  action  between  them  should 
be  secured. 

The  circumstances  of  the  present  time  are  admitted  on  all  sides 
to  oft'er  a  great  opportunity  for  securing  a  permanent  improvement 
in  the  relations  between  employers  and  employed,  while  failure  to 
utilize  the  opportunity  may  involve  the  nation  in  grave  industrial 
difficulties  at  the  end  of  the  war. 

It  is  generally  allowed  that  the  war  almost  enforced  some 
reconstruction  of  industry,  and  in  considering  the  subjects  referred 
to  us  we  have  kept  in  view  the  need  for  securing  in  the  develop- 
ment of  reconstruction  the  largest  possible  measure  of  co-operation 
between  employers  and  employed. 

In  the  interests  of  the  community  it  is  vital  that  after  the  war 
the  co-operation  of  all  classes,  established  during  the  war,  should 
continue,  and  more  especially  with  regard  to  the  relations  between 
employers  and  employed.  For  securing  improvement  in  the  latter, 
it  is  essential  that  any  proposals  put  forward  should  offer  to  work 
people  the  means  of  attaining  improved  conditions  of  employment 
and  a  higher  standard  of  comfort  generally,  and  involve  the  enlist- 
ment of  their  active  and  continuous  co-operation  in  the  promotion 
of  industry. 

To  this  end,  the  establishment  for  each  industry  of  an  organi- 
zation, representative  of  employers  and  work  people,  to  have  as  its 
object  the  regular  consideration  of  matters  affecting  the  progress 
and  w^ell-being  of  the  trade  from  the  point  of  view  of  all  those 
engaged  in  it,  so  far  as  this  is  consistent  with  the  general  interest 
of  the  community,  appears  to  us  necessary. 

Many  complicated  problems  have  arisen  during  the  war  which 
have  a  bearing  both  on  employers  and  work  people,  and  may  affect 
the  relations  between  them.     It  is  clear  that  industrial  conditions 

40 


will  need  careful  handling  if  grave  difficulties  and  strained  rela- 
tions are  to  be  avoided  after  the  war  has  ended.  The  precise  nature 
of  the  problems  to  be  faced  naturally  varies  from  industry  to 
industry,  and  even  from  branch  to  branch  within  the  same  industry. 
Their  treatment  consequently  will  need  an  intimate  knowledge  of 
the  facts  and  circumstances  of  each  trade,  and  such  knowledge  is 
to  be  found  only  among  those  directly  connected  with  the  trade. 

That  the  Committee  was  careful  to  avoid  antagonizing  organized 
labor  or  any  appearance  of  wishing  to  curtail  trade  union  functions  is 
clear. 

As  it  is  of  the  highest  importance  that  the  scheme  making 
provision  for  these  committees  should  be  such  as  to  secure  the 
support  of  the  trade  unions  and  employers'  associations  concerned, 
its  design  should  be  a  matter  for  agreement  between  those 
organizations. 

The  proposals  of  the  Committee  look  to  the  extension  of  collective 
bargaining  to  all  industry.  The  Committee  does  not  purpose,  however, 
that  its  industrial  councils  shall  interfere  with  the  existing  machinery 
of  conciliation  boards  or  other  organizations  for  joint  conference 
between  employer  and  employee.  A  council  would  be  free,  however, 
if  it  chose  and  if  the  bodies  concerned  approved,  to  merge  existing  com- 
mittees, etc.,  in  the  council  or  to  link  them  with  the  council  as  sub- 
committees.^ 

The  councils,  both  national  and  district,  as  well  as  the  works  com- 
mittees, are  to  devote  themselves,  not  primarily  to  disputes,  to  the 
fixation  of  wage  scales,  the  making  of  specific  wage  agreements,  and 
the  like,  but  to  matters  of  policy.- 

Suggcstcd  questions  for  industrial  councils  and  works  committees 
— The  questions  with  which  it  was  suggested  that  the  national  councils 
should  deal  or  allocate  to  district  councils  or  works  committees  com- 
prise the  following: 

{i)  The  better  utilization  of  the  practical  knowledge  and 
experience  of  the  work  people. 

(ii)  Means  for  securing  to  the  work  people  a  greater  share 
in  and  responsibility  for  the  determination  and  observance  of  the 
conditions  under  which  their  work  is  carried  on. 

'  Interim  Report,  Appendix,  question  and  answer  2.     See  also  section   15  of  the  Report 

fT,  . '  H   il  '"t«!:^sting  to  note,   however,   that  one  of  the  first  councils  actually   established- 
that    of    the    bakery    trade — devoted    part    of    its    first    meeting    to    wage    fixation.       Deleeat 
ot    employers    and    operatives,    present    in    equal    numbers,    "dealt    with    the    national    demat 
lor  a  60s    minimum  and   a  40  hours  week  for   bakers   and  confectioners,   a  pro   rata  advance 
to   all   grades,   and  corresponding  advances  to  allied   workers,   including  women       The   council 
unanimously,  fixed    a   minimum   of    55s.    for    rural    districts    and   60s.    for    industrial   districts 
It  was  further  resolved  that  the  Government  ought  to  consult  with  the  council  before  takine 
any  steps  with  regard  to  establishing  national  bakeries."— London  Times,   September  19,  1918. 

41 


es 
emand 


»*•■""•;'  r?» 

V 

^, 

iS^I 

, 

-•* 

(iVi)  The  settlement  of  the  general  principles  governing  the 
conditions  of  employment,  including  the  methods  of  fixing,  paying, 
and  readjusting  wages,  having  regard  to  the  need  for  securing  to 
the  workpeople  a  share  in  the  increased  prosperity  of  the  industry. 

(iv)  The  establishment  of  regular  methods  of  negotiation  for 
issues  arising  between  employers  and  work  people,  with  a  view 
both  to  the  prevention  of  differences,  and  to  their  better  adjust- 
ment when  they  appear. 

(v)  Means  of  ensuring  to  the  work  people  the  greatest  pos- 
sible security  of  earnings  and  employment,  without  undue  restric- 
tion upon  change  of  occupation  or  employer. 

(ii)  Methods  of  fixing  and  adjusting  earnings,  piece-work 
prices,  etc.,  and  of  dealing  with  the  many  difficulties  which  arise 
with  regard  to  the  method  and  amount  of  payment  apart  from  the 
fixing  of  general  standard  rates,  which  are  already  covered  by 
paragraph  (in). 

(vii)   Technical  education  and  training. 

(znii)   Industrial  research  and  the  full  utilization  of  its  results. 

(tr)  The  provision  of  facilities  for  the  full  consideration  and 
utilization  of  inventions  and  improvement  designed  by  work  people, 
and  for  the  adequate  safeguarding  of  the  rights  of  the  designers 
of  such  improvements. 

(x)  Improvements  of  processes,  machinery,  and  organization, 
and  appropriate  questions  relating  to  management  and  the  exam- 
ination of  industrial  experiments,  with  special  reference  to  co-oper- 
ation in  carrying  new  ideas  into  effect  and  full  consideration  of  the 
work  people's  point  of  view  in  relation  to  them. 

(xi)   Proposed  legislation  affecting  the  industry. 
The  Committee  in  this  Interim  Report  makes  no  attempt  to  say 
which  of  these  questions  should  l:>e  taken  up  by  works  committees. 

The  Second  Report — The  Committee's  Second  Report,  on  joint 
standing  industrial  councils  in  less  highly  organized,  or  altogether  unor- 
ganized industries,  is  less  certain  in  touch  than  the  Interim  Report. 
The  Committee,  in  various  places  in  all  its  Reports,  emphasizes  and 
re-emphasizes  the  point  that  its  plan  can  be  applied  only  where  both 
labor  and  capital  are  organized. 

Classification  of  industries — In  this  Second  Report,  the  Committee 
classifies  industries  into  three  groups,  on  the  basis  of  the  degree  of  their 
organization : 

Group  A. — Consisting  of  industries  in  which  organization  on 
the  part  of  employers  and  employed  is  sufficiently  developed  to 
render  their   respective  associations   representative  of  the  great 

42 


majority  of  those  engaged  in  the  industry.  These  are  the  industries 
which  the  Committee  had  in  mind  in  its  Interim  Report. 

Group  B. — Comprising  those  industries  in  which,  either  as 
regards  employers  and  employed,  or  both,  the  degree  of  organiza- 
tion, though  considerable,  is  less  marked  than  in  Group  A. 

Group  C. — Consisting  of  industries  in  which  organization  is 
so  imperfect,  either  as  regards  employers  or  employed,  or  both, 
that  no  associations  can  be  said  adequately  to  represent  those 
engaged  in  the  industry. 

The  Committee  makes  essentially  the  same  recommendations  for 
industries  in  Group  B  that  it  made  in  its  Interim  Report  for  Group  A. 
It  suggests,  however,  that  "where  in  these  industries  a  national  indus- 
trial council  is  formed  there  should  be  appointed  one  or  at  most  two 
official  representatives  to  assist  in  the  institution  of  the  council,  and 
continue  after  its  establishment  to  act  in  an  advisory  capacity  and  serve 
as  a  link  with  the  Government."  It  considers  furthermore  that  in  the 
case  of  Group  B  as  of  Group  A,  "the  members  of  the  national  councils 
and  district  councils  should  be  representatives  of  the  employers'  asso- 
ciations and  trade  unions  concerned."  Women  should  be  included  in 
the  membership. 

As  to  the  industries  in  Group  C,  the  level  of  their  organization  is 
such  as  to  make  the  scheme  proposed  for  the  other  group  inapplicable. 
Pending  the  organization  of  these  industries  by  trade  unions  and 
employers'  associations,  the  Committee  suggests  that  the  trade 
boards  organized  under  the  Board  of  Trade,  which  were  originally 
intended  to  secure  the  establishment  of  a  minimum  standard  of  wages 
in  certain  unorganized  industries,  should  be  regarded  also  as  a  means 
of  supplying  a  regular  machinery  for  negotiation  and  decision  on  cer- 
tain groups  of  questions  dealt  with  in  other  circumstances  by  collective 
bargaining  between  employers'  associations  and  trade  unions.  To  this 
end,  it  recommends  that  the  Trade  Boards  Act  be  so  modified  as 
to  enable  trade  boards  in  these  industries  to  initiate  and  conduct 
inquiries  on  all  matters  affecting  the  industry  concerned.  In  Group 
C  industries,  trade  boards  should  be  continued  or  established,  and 
''these  should,  with  the  approval  of  the  Ministry  of  Labor,  be  enabled 
to  formulate  a  scheme  for  an  industrial  Council,  which  might  include 
in  an  advisory  capacity  the  appointed  members  of  the  trade  board." 
Substantially  the  same  proposal  is  made  for  unorganized  areas  or 
branches  of  industries  in  Group  A  and  B. 

Briefly,  the  proposals  are  that  the  extent  of  state  assistance  should 
vary  inversely  with  the  degree  of  organization  in  the  industry. 

The  Government's  demurrer — The  Government  entered  a 
demurrer  to  the  proposals  of  the  Second  Report.^     It  would  not  be 

I  \i!"^x"/*'"-*'  Councils  and  Trade  Boards:   Memorandum  by  the  Minister  of  Reconstruction 
an  I  the   Minister  of  Labor.  June  7,   1918,  Cd.   9085.  i^cconsrrucnon 

43 


JSflM 


'i-^lt,^  iS.-^Ss-.va^*." 


^    I 


desirable  for  trade  boards  to  undertake  the  formation  of  schemes  of 
industrial  councils,  say  the  Ministers,  because  the  purpose,  structure, 
and  functions  of  industrial  councils  and  trade  boards  are  fundamentally 
different. 

The  question  whether  an  industrial  council  should  be  formed 
for  a  given  industry  depends  on  the  degree  of  organization 
achieved  by  the  employers  and  workers  in  the  industry,  whereas 
the  question  whether  a  trade  board  should  be  established  depends 
primarily  on  the  rates  of  wages  prevailing  in  the  industry  or  in 
any  part  of  the  industry. 

The  Government— although  in  the  opinion  of  some  it  has  not  set 
a  good  example  in  practice  by  applying  the  Whitley  recommendations 
to  Government  departments— stands  committed  to  the  policy  of  the 
introduction  of  the  Whitley  plan  in  all  organized  industries  (Group  A) 
and.  by  implication,  to  partially  organized  industries  under  Group  B.* 

Supplementary  Report  on  Works  Committees— To  co-operative 
management  within  the  plant  the  Wliitley  Committee  gives  specific 
attention  in  its  third  Report,  on  "Works  Committees."  =  The  purpose 
of  such  committees  is  there  explained  as  follows : 

Better  relations  between  employers  and  their  work  people  can 
best  be  arrived  at  by  granting  to  the  latter  a  greater  share  in  the 
consideration  of  matters  with  which  they  are  concerned.     In  every 
industry  there  are  certain  questions,  such  as  rates  of  wages  and 
hours  of  work,   which  should  be   settled   by  district  or  national 
agreement,  and  with  any  matter  so  settled  no  works  committee 
should  be  allowed  to  interfere ;  but  there  are  also  many  questions 
closely  affecting  daily  life  and   comfort  in,  and  the  success  of, 
the  business,  and  affecting  in  no  small  degree  efficiency  of  work- 
ing,  which  are  peculiar  to  the   individual   workshop  or   factory. 
The  purpose  of  the  works  committee  is  to  establish  and  maintain 
a  system  of  co-operation  in  all  these  workshop  matters.^ 
That  there  will  frotn  time  to  time  arise  matters  "which  the  man- 
agement or  the  workmen  consider  to  be  questions  they  cannot  discuss 
in  these  joint  meetings,"  is  recognized  by  the  Committee,  but  it  ''antici- 
pates that  nothing  but  good  will  come  from  the  friendly  statement  of 
the  reasons  why  the  reservation  is  made."  * 

Recognition    of   organised   labor— The   question   of   works    com- 
mittees in  unorganized  industries  is  troublesome.     Whether  thev  are 

^  See  section  2  of  the  "Memoranduni."  Also  letter  addressed  l)y  the  Minister  of  Labor 
to  the  Leading  Employers  Associations  and  frade  Unions,  October  20,  1917.  published  in 
Industrial  Reports.  No.  1,  1917.  Reprinted  in  Reports  on  Reconstruction  from  English 
Sources,   by   the   Emergency    Fleet   Corporation,    1918.  ^iitini>ii 

'Supplementary   Report   on    Works    Committees,   October,    1917, 

'  Section   2.  . 

*  Section    7. 

44 


to  be  recommended,  the  Committee  thinks,  is  a  question  which  calls  for 
very  careful  examination.^ 

Our  proposals  as  a  whole  assume  the  existence  of  organiza- 
tions of  both  employers  and  employed  and  a  frank  and  full  recog- 
nition of  such  organizations.  Works  committees  established  other- 
wise than  in  accordance  with  these  principles  could  not  be  regarded 
as  a  part  of  the  scheme  we  have  recommended,  and  might  indeed 
be  a  hindrance  to  the  development  of  the  new  relations  in  industry 
to  which  we  look  forward.  .  .  . 

We  think  it  important  to  state  that  the  success  of  the  works 
committees  would  be  very  seriously  interfered  with  if  the  idea 
existed  that  such  committees  were  used,  or  likely  to  be  used,  by 
employers  in  opposition  to  trade  unionism.  It  is  strongly  felt  that 
the  setting  up  of  works  committees  without  the  co-operation  of 
the  trade  unions  and  the  employers'  associations  in  the  trade  or 
branch  of  trade  concerned  would  stand  in  the  way  of  the  improved 
industrial  relationshijjs  which  in  these  reports  we  are  endeavoring 
to  further. 

In  an  industry  where  the  work  people  are  unorganized,  or  only 
very  partially  organized,  there  is  a  danger  that  works  committees 
may  be  used,  or  thought  to  be  used,  in  opposition  to  trade  union- 
ism. It  is  important  that  such  fears  should  be  guarded  against 
in  the  initiation  of  any  scheme.  We  look  upon  successful  works 
committees  as  the  broad  base  of  the  industrial  structure  which  we 
have  recommended,  and  as  the  means  of  enlisting  the  interest  of 
the  w^orkers  in  the  success  both  of  the  industry  to  which  they  are 
attached,  and  of  the  workshop  or  factory  where  so  much  of  their 
life  is  spent.  These  committees  should  not,  in  constitution  or 
methods  of  working,  discourage  trade  organizations.- 

Thc  Report  on  Conciliation  and  Arbitration— In  January,  1918,  the 
Whitley  Committee  signed  its  fourth  report,  on  Conciliation  and  Arbi- 
tration.^ The  report  was  not  published,  however,  until  June  14.  It 
was  prepared  in  the  belief  that  some  attention  should  be  given  "to  the 
cases  in  which  the  parties  may  desire  voluntarily  to  refer  some  differ- 
ence that  has  arisen  to  arbitration  and  conciliation,"  even  where  indus- 
trial councils  exist.  The  Committee  specifically  disclaims  any  inten- 
tion, however,  "to  express  any  views  on  the  extent  to  which  disputes 
can  be  equitably  or  satisfactorily  settled  in  this  way." 

Compulsory  arbitration  opposed— The  Committee  pronounces 
definitely  against  any  system  of  compulsory  arbitration,  on  the  grounds 

»  Second   Report,   Section   14. 

■  Supplementary    Report    on    Works    Committees,    sections    3-5, 

f.«   '^^    ?-^?^  J'"  substitution  of  Cd.  9081).     This  is  reprinted  in  "Reports  on  Reconstruction 
from    English    Sources."   published   by   the   Emergency   Fleet   Corporation     Ph"ladelphit    1918 

45 


i.*i*l' 


'•m 


that  it  is  not  generally  desired  by  employers  and  employed,  that  it  has 
not  proved  a  successful  method  of  avoiding  strikes  during  the  war,  and 
that  it  would  be  less  likely  to  be  successful  in  time  of  peace.  It  also 
pronounces  against  any  scheme  of  conciliation  which  would  suspend  a 
strike  or  lock-out  pending  an  inquiry. 

Industrial  councils  to  co-operate  with  existing  conciliation  machin- 
ery— It  adv(xates  the  continuance,  however,  of  the  present  machinery 
for  voluntary  conciliation  and  arbitration,  and  hopes  that  the  setting 
up  of  joint  industrial  councils  (on  the  lines  recommended  in  the  earlier 
reports)  will  tend  to  the  growth  of  such  machinery.  It  considers  that 
there  should  be  means  for  holding  independent  inquiry  into  the  circum- 
stances of  a  dispute  and  for  making  an  authoritative  pronouncement  on 
it  without  the  compulsory  power  of  delaying  the  strike  or  lock-out.  Its 
main  constructive  suggestion  is  that  a  Standing  Arbitration  Council 
should  be  established  on  the  lines  of  the  present  temporary  Committee 
on  Production.  To  this  council  disputants  would  be  able  voluntarily 
to  refer  such  differences  as  they  themselves  cannot  settle. 

It  is  suggested,  however,  that  single  arbitrators  should  be  available 
for  less  important  cases,  which  could  be  heard  locally.  It  is  further 
suggested  that  the  Standing  Arbitration  Council  should  take  means  to 
secure  the  co-ordination  of  arbitrators'  decisions.  The  Committee  is 
opposed  to  the  enforcement  of  awards  and  agreements  by  means  of 
monetary  penalties. 

Final  Report — On  June  14,  1918,  the  Whitley  Committee  presented 
its  final  Report,'  having  come  to  the  conclusion  that  if  it  was  to  under- 
take further  inquiries,  there  would  be  a  considerable  amount  of  over- 
lapping, either  with  the  work  that  is  now  being  carried  on  by  the 
Central  Departments  or  with  the  duties  and  functions  of  the  industrial 
councils. 

1  he  Report  does  not  very  much  more  than  summarize  the  main 
conclusions  of  the  four  preceding  Reports.  It  does,  however,  empha- 
size the  urgency  of  action  on  the  lines  of  the  previous  Reports.  The 
Committee  says  that  there  is  pressing  need,  in  every  organized  indus- 
try, of  representative  councils,  and  it  looks  forward  to  a  continual 
growth  of  the  use  of  such  machinery  when  its  efficacy  has  been  proved 
by  experience. 

On  the  question  of  the  adoption  of  schemes  of  profit  sharing  and 
co-partnership,  the  Committee  says  that  it  has  considered  the  evidence 
at  present  available,  and  has  felt  bound  to  come  to  the  conckision  that 
it  does  not  justify  putting  forward  any  general  recommendations.  In 
pointing  out  that  the  recommendations  it  has  made  have  the  effect  of 
conferring  upon  joint  industrial  councils  and  industries  a  large  measure 
of   self-government,  the   Committee   adds  that  many  of  the   subjects 

»  Cd.  9153. 

46 


which  might  perhaps  have  been  suggested  as  forming  objects  of  inquiry 
by  it  are  matters  which  can  more  usefully  and  profitably  be  considered 
by  joint  organizations  composed  of  those  actually  concerned  by  various 
trades. 

Five  of  the  members  of  the  Committee — Mr.  Clynes,  Mr.  J.  A. 
Hobson,  Miss  Susan  Lawrence,  Mr.  J.  J.  Mallon,  and  Miss  Mona 
Wilson — while  approving  of  the  general  scheme,  sign  a  note  attached 
to  the  Report,  which  expresses  their  view  that,  though  the  amicable 
relations  established  between  capital  and  labor  by  the  introduction  of 
industrial  councils  or  trade  boards  are  favorable  to  industrial  peace  and 
progress,  a  complete  identity  of  interests  cannot  be  effected  and  that 
''such  machinery  cannot  be  expected  to  furnish  a  settlement  for  the 
more  serious  conflicts  of  interests  involved  in  the  working  of  an 
economic  system  primarily  governed  and  directed  by  motives  of  profit." 

3.   The  Government  and  the  Whitley  Recommendations. 

The  Interim  Report  submitted  to  employers  associations  and  trade 
unions — The  Interim  Report  reached  the  Government  as  a  confidential 
document  in  March,  1917.  It  met  with  universal  approval  and  high 
hopes  were  extended  as  to  the  benefits  which  might  result  from  the 
adoption  of  a  system  of  national  industrial  councils  and  works  com- 
mittees which  it  recommended.  It  was  decided  at  that  time  to  circulate 
copies  of  the  Report  to  trade  unions  and  employers'  associations 
throughout  the  country.  In  July,  1917,  this  was  done,  and  opinions 
and  criticism  asked   for. 

The  circular  letter  submitting  the  Report  contained  a  model  consti- 
tution^ for  the  councils,  and  a  statement  outlining  the  functions  which 
it  was  hoped  the  councils  would  fulfill.     These  are  as  follows : 

1.  To  secure  the  largest  possible  measure  of  joint  action 
between  employers  and  workpeople  for  the  development  of  the 
industry  as  a  part  of  national  life  and  for  the  improvement  of  the 
conditions  of  all  engaged  in  that  industry. 

It  will  be  open  to  the  council  to  take  any  action  that  falls 
within  the  scope  of  this  general  definition.  Among  its  more 
specific  objects  will  be  the  following: 

N.  B. — It  is  not  possible  and  it  is  not  the  intention  of  the 
minister  to  suggest  any  hard  and  fast  policy  as  to  what  should 
constitute  the  functions  of  an  industrial  council.  This  is  a  ques- 
tion which  the  employers  and  work  people  in  each  industry  must 
settle  for  themselves  in  their  preliminary  conferences  in  the  light 
of  their  special  needs  and  conditions. 

2.  Regular    consideration    of    wages,    hours,    and    working 
conditions  in  the  industry  as  a  whole. 

*  This  is  reprinted  in  Appendix  I. 

47 


<»4 


HOOL  OF  BUSINESS 


fi-*v 


N.  B.— In  some  cases  a  joint  industrial  council  will  contain 
representatives  of  a  number  of  trades  which  have  been  accustomed 
in  the  past  to  deal  with  such  questions  as  wages,  hours,  etc. 
through  their  already  existing  organizations.  To  meet  such  cases 
the  following  clause  has  been  inserted  in  one  of  the  draft  constitu- 
tions: "Provided,  That  where  any  such  matters  have  in  the  past 
been  dealt  with  separately  by  any  organization,  such  matters  shall 
not  be  dealt  with  by  the  council  as  far  as  that  organization  is 
concerned  without  the  consent  of  the  representatives  of  that 
organization." 

3.  The  consideration  of  measures  for  regularizing  production 
and  employment. 

4.  The  consideration  of  the  existing  machinery  for  the  settle- 
ment of  differences  between  different  parties  and  sections  in  the 
industry,  and  the  establishment  of  machinery  for  this  purpose 
where  it  does  not  already  exist,  with  the  object  of  securing  the 
speedy  settlement  of  difficulties. 

5.  The  collection  of  statistics  and  information  on  matters 
appertaining  to  the  industry. 

6.  The  encouragement  of  the  study  of  processes  and  design 
and  of  research,  with  a  view  to  perfecting  the  products  of  the 
industry-. 

7.  The  provision  of  facilities  for  the  full  consideration  and 
utilization  of  inventions  and  any  improvement  in  machinery  or 
method,  and  for  the  adequate  safeguarding  of  the  rights  of  the 
designers  of  such  improvements,  and  to  secure  that  such  improve- 
ment in  method  or  invention  shall  give  to  each  party  an  equitable 
share  of  the  benefits  financially  or  otherwise  arising  therefrom. 

8.  Inquiries  into  special  problems  of  the  industry,  including 
the  comparative  study  of  the  organization  and  methods  of  the 
industry  in  this  and  other  countries,  and,  where  desirable,  the 
publication  of  reports. 

9.  The  improvement  of  the  health  conditions  obtaining  in  the 
industry,  and  the  provision  of  special  treatment  where  necessary 
for  workers  in  the  industry. 

10.  The  supervision  of  entry  into,  and  training  for  the  indus- 
try, and  co-operation  with  the  educational  authorities  in  arranging 
education  in  all  its  branches  for  the  industry. 

11.  The  issue  to  the  press  of  authoritative  statements  upon 
matters  affecting  the  industry  of  general  interest  to  the  community. 

12.  Representation  of  the  needs  and  opinions  of  the  industry 
to  the  Government,  government  departments,  and  other  authorities. 

48 


13.  The  consideration  of  any  other  matters  that  may  be 
referred  to  it  by  the  Government  or  any  government  department. 

14.  The  consideration  of  the  proposals  for  district  councils 
and  works  committees  put  forward  in  the  Whitley  report,  having 
regard  in  each  case  to  any  such  organizations  as  may  already  be 
in  existence. 

Note — The  following  have  also  been  included  among  the 
functions  in  some  of  the  provisional  constitutions  which  have  been 
brought  to  the  notice  of  the  ministry  of  labor: 

(i)  The  consideration  of  measures  for  securing  the  inclusion 
of  all  employers  and  work  people  in  their  respective  associations. 

(ii)  The  arrangement  of  lectures  and  the  holding  of  confer- 
ences on  subjects  of  general  interest  to  the  industry. 

(Hi)  Co-operation  with  the  joint  industrial  councils  for  other 
industries  to  deal  with  problems  of  common  interest. 

Meanwhile  the  arising  tide  of  industrial  unrest,  which  had  for 
two  years  been  causing  grave  concern  in  England,  received  further 
official  recognition  in  June,  1917,  in  Lloyd  George's  appointment  of  the 
Commission  of  Inquiry  into  Industrial  Unrest.  The  Ministry  of  Labor 
submitted  the  Interim  Report  to  the  eight  industrial  unrest  sub- 
commissions,  who  quickly  got  it  before  a  large  number  of  employers 
and  labor  officials.  Seven  of  these  sub-commissions  w^ere  emphatically 
in  favor  of  the  Whitley  proposals.  The  other  did  not  refer  to  it.  By 
October  the  replies  from  the  trade  unions  and  employers'  associations 
had  been  received  and  tabulated.  Most  of  the  answers  were  over- 
whelmingly in  favor  of  the  adoption  of  the  principles  of  the  Whitley 
Report.  A  great  majority  of  the  trade  unions  w^ere  in  favor  of  the 
Report,  and  hardly  any  were  absolutely  averse,  though  several  made 
various  criticisms  or  reservations. 

October  letter  of  the  Minister  of  Labor — Backed  thus  by  public 
opinion  and  the  adherence  of  organized  labor  and  the  employers' 
associations,  the  Government  gave  instructions  to  the  Minister  of 
Labor  to  take  immediate  action  to  carry  out  the  scheme  outlined  by 
the  Report.  Mr.  George  H.  Roberts,  the  Minister  of  Labor,  accord- 
ingly addressed,  on  October  20,  1917,  a  letter  to  the  leading  employers' 
associations  and  trade  unions  explaining  the  Government's  intentions 
and  purposes  with  regard  to  the  formation  of  industrial  councils.^ 

No  increase  of  State  control — Mr.  Roberts  sets  at  rest  certain 
unfounded  fears.  In  the  first  place,  the  proposal  to  set  up  industrial 
councils  does  not  indicate  an  intention  to  introduce  an  element  of  State 

'This  letter   is   reprinted   in   "Reports   on   Reconstruction    from    English    Sources,"   United 
Whitley  Committee's  Fourth  Report,  on  Conciliation   and  Ai  titration. 

49 


:.ys 


ill 

i ' 
ill 


!iP 


^^^i-^"igt'' 


\ 


interference  which  has  heretofore  not  existed  in  industry.  The  forma- 
tion and  constitution  of  the  councils  must  be  principally  the  work  of  the 
industries  themselves  and  must  depend  upon  a  general  agreement 
among  the  various  organizations  within  the  industry  and  a  clearly 
expressed  demand  for  the  creation  of  a  council.  When  formed,  the 
councils  arc  to  he  independent  bodies,  electing  their  ozmi  officers,  and 
free  to  determine  their  ozvn  functions  and  procedure  iinth  reference  to 
the  peculiar  needs  of  each  trade.  It  is  Mr.  Roberts's  opinion  that  they 
will  make  possible  a  larger  degree  of  self-government  in  industry  than 
exists  today. 

Rigidity  of  organization  not  intended — Secondly,  the  scheme  is  not 
intended  to  be  inelastic.  '*To  anyone  with  a  knowledge  of  the  diverse 
kinds  of  machinery  already  in  operation,  and  the  various  geographical 
and  industrial  conditions  which  affect  different  industries,  it  will  be 
obvious  that  no  rigid  scheme  can  be  applied  to  all  of  them." 

Councils  not  to  usurp  functions  of  employers'  associations  and 
trade  unions — Third,  the  councils  are  not  intended  in  any  way  to  dis- 
place existing  organizations.  On  the  contrary,  ''representation  on  the 
industrial  councils  is  intended  to  be  on  the  basis  of  existing  organiza- 
tions among  employers  and  workmen  concerned  in  each  industry, 
although  it  will,  of  course,  be  open  to  the  council,  when  formed,  to 
grant  representation  to  any  new  bodies  which  may  come  into  existence 
and  which  may  be  entitled  to  representation.'' 

Compulsory  arbitration  not  desired — Lastly,  the  suggestion  that 
the  scheme  is  intended  to  promote  compulsory  arbitration  is  unfounded. 
"Whatever  agreements  may  be  made  for  dealing  with  disputes  must 
be  left  for  the  industry  itself  to  form  and  their  efficacy  must  depend 
upon  the  voluntary  co-operation  of  the  organization  concerned  in  carry- 
ing them  out."^ 

Aeed  of  an  industrial  board  with  ivhich  the  Government  may  con- 
sult in  each  industry — Passing  to  the  "reasons  which  have  made  the 
Government  anxious  to  see  industrial  councils  established  as  soon  as 
possil)le  in  the  organized  trades,"  Mr.  Roberts  points  out  the  need  for 
frequent  consultation  between  the  Government  and  the  chosen  repre- 
sentatives of  both  employers  and  workmen  on  vital  questions  concern- 
ing industries.  "The  Government  desires  it  to  be  understood,"  he  says, 
"that  the  councils  will  be  recognized  as  the  official  standing  consulting 
committee  to  the  Government  on  all  future  questions  affecting  the 
industries  which  they  represent  and  that  they  will  be  the  normal  chan- 
nel through  which  the  opinion  and  experience  of  an  industry  will  be 
sought  on  all  questions  with  which  the  industry  is  concerned.     It  will 

'  This    disavowal    of    compulsory    arhitration    is    confirmed,    as    above    indicated,    in    the 
Whitley    Committee's    Fourth    Report,   on    Conciliation    and    Arbitration. 

50 


be  seen,  therefore,  that  it  is  intended  that  industrial  councils  should 
play  a  definite  and  permanent  part  in  the  economic  life  of  the  coun- 
try." In  concluding,  Mr.  Roberts  emphasizes  the  pressing  need  for 
the  organization  of  industrial  councils  in  each  organized  industry  at  as 
early  a  date  as  possible.  The  motives  to  this  appeal  are  to  be  found 
in  a  desire  first  to  allay  industrial  unrest  during  the  w^ar,  and  secondly, 
to  be  prepared  with  a  machinery  which  can  meet  effectively  the  indus- 
trial problems  of  the  reconstruction  era,  especially  the  problem  of 
efficiency  and  ability  to  meet  intense  foreign  economic  competition  after 
the  war.  This  urgent  need  for  speedy  progress  in  the  movement  has 
been  again  and  again  emphasized  by  the  Minister  of  Labor  and  the 
Minister  of  Reconstruction. 

4.    Progress  of  the  Formation  of  Industrial  Councils 

Actual  progress  in  the  formation  of  joint  industrial  councils  has 
been  remarkably  rapid,  considering  the  importance  of  the  step.  Speak- 
ing before  a  meeting  of  the  National  Union  of  Journalists  on  August 
24,  1918,  Mr.  Roberts  announced  that  up  to  that  time  nine  councils 
had  actually  been  formed,  nineteen  were  in  progress  of  formation,  and 
twenty  in  other  trades  were  in  preliminary  stages. 

The  industries  in  which  councils  had  been  formed  by  July  include 
the  pottery  industry,  the  building  industry,  heavy  chemicals,  gold, 
silver  and  kindred  trades,  rubber  and  silk,  baking,  and  furniture.  At 
that  time  progress  had  been  made  in  the  cable-making  industry,  com- 
mercial road  transport,  belting,  machines,  and  vehicle  building.  A 
constitution  for  the  printing  industry  had  been  drafted,  but  not  yet  sent 
out  to  the  associations  concerned  for  approval. 

In  the  case  of  five  industries;  namely,  bobbin  manufacture,  boot 
and  shoe  manufacture,  electricity  (power  and  supply),  metal  engraving, 
and  the  w^oolen  and  worsted  industry,  conferences  had  taken  place  and 
had  approved  the  drafting  of  a  constitution.  It  is  impossible  at  this 
time  and  distance  to  say  just  how  many  industries  have  actually  estab- 
lished councils,  and  copies  of  their  constitutions  are  not  at  hand,  with 
the  exception  of  that  of  the  council  of  the  pottery  industry,  which  was 
the  first  formed.^  This  council  consists  of  sixty  members  equally  rep- 
resentative of  employers  and  operators.  Its  first  meeting  w^as  held  on 
January  11,  1918,  and  was  attended  by  the  Minister  of  Labor  and 
Minister  of  Reconstruction.-  The  council  is  empowered  to  deal  with 
wages  and  selling  basis,  regularization  of  production,  improved  condi- 
tions of  labor,  betterment  of  the  health  of  workers,  technical  education, 
study  of  trade  union  processes,  facilities  for  invention,  the  collection 
of  market  statistics  and  information,  and  suggestions  to  local  and  gov- 
ernmental authorities  in  the  interest  of  the  industry. 

'  For   form  of  Constitution   recommended  by  the   Ministry   of   Labor,    See   Appendix   II. 
*  See  United  States  Bureau  of  Labor  Statistics,  Monthly  Review,  April,  1918.,  pp.  234  236. 

51 


m 


Councils  for  public  utility  industries — The  industrial  council  idea 
has  not  only  pervaded  the  field  of  private  industry,  but  has  also  found 
entrance  into  municipal  enterprise.  Representatives  of  municipal  and 
private  water  undertakings  met  in  September,  1918.  and  agreed  to  form 
a  joint  industrial  council.^  The  principles  of  the  Interim  Report  have 
been  approved  by  the  Association  of  Municipal  Corporations,  and  the 
establishment  of  councils  is  under  consideration  for  the  gas.  electricity, 
tramways,  and  non-trading  municipal  services. - 

Demand  for  councils  in  goicrnmcnt  departments — There  has  been 
an  insistent,  and  not  illogical  demand,  also,  that  the  Government  indi- 
cate its  faith  in  its  own  proposals  by  adopting  the  Whitley  principles 
in  the  governmental  departments.  There  is  indication  that  the  Gov- 
ernment was  not  unanimous  on  the  matter  of  establishing  Whitley 
councils  in  the  various  departments.  In  December.  1917,  Mr.  Bonar 
Law,  answering  a  question  in  the  House  of  Commons,  stated  that  the 
matter  wa^  receiving  consideration,  and  that  the  Government  fully 
realized  the  importance  of  setting  an  example.  During  the  discussion 
of  the  postoffice  budget  in  the  House  of  Commons  on  June  12,  1918, 
several  labor  meml)ers  advocated  establishing  some  kind  of  joint  council 
in  that  service.  Replying  to  these  members,  the  Assistant  Postmaster 
General  said  that  the  matter  was  to  come  before  the  cabinet  in  a  very 
short  time.  It  was  felt  that  the  movement  would  receive  great  impetus 
should  the  postoffice  establish  a  joint  industrial  council.  The  Ministry 
of  Labor  was  inclined  to  the  belief  that  Government  action,  as  in  the 
postoffice  case,  was  necessary  before  full  confidence  could  be  estab- 
lished in  the  trades.  The  common  idea  seemed  to  be  that  the  postoffice 
offered  an  exceptionally  good  opportunity  to  try  out  the  scheme,  as, 
generally  speaking,  the  employees  are  mostly  of  an  educated  class  some- 
what above  the  average.'^ 

Tlu^  r,overnment,  lunvcver.  while  urging  other  employers  to  set  up 
joint  councils  to  give  workers  a  part  in  management,  still  held  off  from 
setting  the  example.  In  July.  1918,  in  a  Parliamentary  debate  on  sup- 
|)ly.  the  Government  was  pressed  to  adopt  the  council  system  for  the 
postoffice.  Mr.  P>onar  Law,  again  replying  to  Mr.  Roundtree, 
announced  that  "the  War  Cabinet  has  decided  to  aclopt  in  principle  the 
application  of  the  recommendations  of  the  Whitley  Report  with  the 
necessary  adaptations  to  government  establishments  where  the  condi- 
tions are  sufficiently  analogous  to  those  existing  in  outside  industries." 
It  had  l>een  decided  also,  he  said,  that  an  inter-departmental  commit- 
tee, presided  over  by  the  Minister  of  Labor,  and  composed  of  repre- 
sentatives of  the  departments  concerned  should  be  set  up  to  consider 
what  modifications  were  necessary,* 

'  London    Times.    September    19,    1918. 

»  Round   Table,   September   18.   1918.   p.   823. 

»  I'nited   States    Uureau  of   Libor   Statislics.   Monthlv  Labor  Rczicxc,   August,   1918.  p.    80. 

♦  Lomlon   Time.s,  July   5,   1918. 

52 


Later  in  July  a  conference  of  representatives  of  all  branches  of 
civil  service  was  held  to  demand  the  application  of  the  Whitley  recom- 
mendations to  government  departments.  A  resolution  asking  that  a 
national  council  should  be  set  up  to  deal  with  matters  common  to  the 
whole  service  was  adopted.  The  report  of  a  sub-committee  was  pre- 
sented, suggesting  that  the  civil  service  might  favorably  consider  the 
setting  up  of  a  national  council  for  the  service,  with  councils  in  each 
department,  and  a  special  sub-committee  for  the  Treasury.  A  resolu- 
tion expressing  regret  that  the  Prime  Minister  had  not  acceded  to  the 
request  put  forward  by  the  sub-committee  was  also  carried.^ 

The  actual  procedure  worked  out  in  the  postoffice  and  by  the 
Admiralty  seems  to  have  been  far  from  satisfactory  to  the  public.  In 
both  departments,  schemes  were  finall}^  set  up  which  w^ere  unlike  the 
Whitley  plan,  primarily  in  that  they  do  not  make  the  trade  unions  the 
organs  of  the  industrial  councils  and  committees  established.  Speak- 
ing in  Portsmouth  at  a  conference  of  employers  and  workmen,  Mr.  J.  J. 
Mallon  said  that  it  was  profoundly  disappointing,  after  the  Government 
had  emphatically  blessed  the  Whitley  Report,  that  one  of  its  own 
departments  should  thus  deliberately  put  it  aside.  The  Admiralty's 
scheme  for  the  setting  up  of  shop  committees  and  a  yard  committee  in 
every  royal  dockyard  and  other  naval  establishments,  he  said,  was 
unlike  the  Whitley  Report  in  function,  constitution,  and  procedure. 
The  Secretary  of  the  National  Alliance  of  Capital  and  Labor,  in  a 
letter  to  the  Times,  June  21,  1918,  expressed  the  opinion  that  the  fail- 
ure of  the  Admiralty  to  recognize  the  trade  unions  in  connection  with 
the  scheme  they  are  endeavoring  to  carry  out  for  the  creation  of  W^hit- 
ley  committees  in  the  dockyards,  and  the  delay  on  the  part  of  the 
Postmaster  General  in  applying  the  Whitley  scheme  to  the  great  organi- 
zation under  his  control,  are  two  very  disquieting  signs  to  those  who 
realize  the  vital  necessity  of  a  genuine  reconstructive  program.  The 
Times  itself  in  an  editorial  expressed  some  impatience.  Thus  the 
slowness  and  uncertainty  manifested  by  the  Government,  and  especially 
the  failure  to  follow  the  Whitley  recommendations  and  incorporate  the 
trade  unions  into  the  plan,  called  forth  not  a  little  adverse  criticism. 

It  would  not  be  worth  while  to  give  thus  much  attention  to  the 
question  of  councils  in  the  government  departments  did  not  the  criticism 
of  the  Government's  failure  to  take  quick  and  favorable  action  indicate 
how  ready,  and  even  anxious,  the  English  public  is  to  have  the  Whitley 
program  go  through  without  delay  or  equivocation. 

5.    Criticisms  of  the  Whitley  Plan 

Criticisms  of  the  Whitley  plan  have  not  been  many,  nor  in  anv 
case  drastically  adverse. 


'  London    Times,    July   29,    1918 


53 


N 


Might  mean  compulsory  arbitration — Mr.  H.  Luberry,  of  the 
Fawcett  Association,  at  a  meeting  of  the  Trade  Union  Congress,  Sep- 
tember 5,  1917,  expressed  apprehension  of  one  danger  in  the  Whitley 
councils.  Should  the  workmen's  representatives  come  out  of  a  joint 
council  with  something  which  did  not  satisfy  the  men.  the  men's  repre- 
sentatives could  not,  in  fairness,  countenance  the  use  of  the  old  trade 
union  method  of  the  strike.  In  that  way,  he  thought,  the  system  might 
practically  lead  to  a  system  of  compulsory  arbitration.^ 

To  this  fear  the  Whitley  Committee's  Report  on  Conciliation  and 
Arbitration  seems  sufficient  answer. 

The  advocates  of  compulsory  arbitration,  of  a  type  suggested  by 

the  Canadian  Industrial  Disputes  Act,  are  to  be  sought  in  other  than 

governmental    quarters.     The    Federation    of    British    Industries — an 

organization   similar   to   the   Chamber   of    Commerce   of   the   United 

States — in  a  pamphlet  issued  August  3,  1917,-  is  of  the  opinion  that: 

Provision  of  methods  for  preventing  or  settling  differences  is 

almost  as   important  as  provision   of    facilities   for  co-operative 

action,  and  ...  if  no  strike  or  lockout  could  take  place  until  the 

question  had  been  submitted  to  final  arbitration  by  a  truly  national 

council  of  employers  and  employed,  there  would  be  good  grounds 

for  hoping  that  the  time  for  reflection  afforded  and  the  pressure 

of  popular  opinion  would  insure  the  loyal  adoption  of  the  award. 

Some  fear  has  been  expressed  in  various  quarters,  also,  that  the 
Whitley  scheme  was  preparation  for  the  continuation  of  government 
interference  in  industry,  though  it  is  hard  to  see  how  any  such  fear 
could  legitimately  be  derived  from  the  Committee's  reports.  Mr. 
Roberts,  as  we  have  seen,  in  his  letter  of  October  20,  1917,  formally 
disavowed  any  such  intention. 

Technical  experts  and  office  force  not  represented — Another, 
though  minor,  criticism  is  that  the  scheme  of  councils  and  works  com- 
mittees does  not  leave  any  place  in  the  government  of  the  industry  for 
the  professional  engineers  and  technical  experts,  or  for  office  employees. 
Speaking  of  the  council  established  in  the  silversmith  and  allied  indus- 
tries, a  correspondent  in  ''Engineer,"  August  18,  1918,  said : 

This  council  affects  one  of  Sheffield's  oldest  industries,  but 
whilst  the  employers  are  represented  on  it  to  the  extent  of  seven- 
teen members  and  the  trade  unions  concerned  to  the  same  extent, 
there  is  not  the  slightest  representation  of  the  higher  members  of 
the  administrative  and  clerical  staffs.  I  know,  as  a  matter  of  fact, 
that  these  men  are  unrepresented,  and  as  the  constitution  of  all  the 
Whitley  councils  will  be  virtually  identical,  there  seems  to  be  a 

1  London  Times,  September  6,   1917. 

-  Industrial     Councils,    Recommendations    on    the    Whitley    Report.       See    United     States 
Bureau  of  Labor  Statistics,  Monthly  Labor  Review,  October,  1918,  pp.  44-47. 

54 


danger  of  overlooking,  throughout  the  industrial  system,  a  body  of 
men  occupying  important  positions  who  should  be  assured  of  rep- 
resentation. In  the  Sheffield  case  quoted  there  is  an  extensive 
Silversmiths'  Staffs  Guild.  It  is  not  a  trade  union,  but  was  formed 
for  improving  the  status,  knowledge,  and  usefulness  of  managers 
and  administrative  staffs  generally.  Yet  this  body  was  never  once 
consulted  in  any  way  about  the  constitution  of  the  joint  industrial 
council,  in  the  deliberations  of  which  it  will  consequently  have  no 
voice.  Its  members  are,  generally  speaking,  managers — that  is, 
they  are  not  employers — but  in  the  event  of  a  strike  or  of  any 
trouble  between  the  employers  and  employees,  they  are  expected  to, 
and  of  course  invariably  do,  stand  loyally  by  the  former.  For  that 
very  reason,  whilst  they  are  not  employers,  but  representatives  of 
them,  they  are  outside  the  pale  of  the  trade  unions,  and  under  the 
Whitley  scheme  they  appear  to  be  outside  the  pale  of  everything. 

Another  correspondent  in  "Engineer"  August  30,  1918,  attributed 
the  exclusion  of  technical  men  and  office  help  to  "the  strong  trade  union 
element  embodied  in  the  Whitley  Committee."  It  is  possible  that  a  real 
weakness  in  the  Whitley  plan  is  here  pointed  out  (though  it  can  hardly 
be  said  to  be  due  to  excessive  trade  union  influence)  ;  industrial  democ- 
racy would  demand  that  all  who  are  concerned  in  an  industry  should 
have  a  voice  in  its  government. 

In  giving  technical  experts  and  office  force  representation,  how- 
ever, care  would  have  to  be  taken  that  the  employers  did  not  get  double 
representation  on  the  councils. 

The  interests  of  the  consumer  endangered — Another  possible 
objection  to  the  council  plan  has  to  do  with  the  relation  of  the  industry 
to  the  consuming  public.  Looking  ahead,  it  is  possible  to  see  that 
joint  councils  of  employers  and  employees,  if  they  succeed  in  reaching 
a  common  basis  of  good  will  and  industrial  solidarity,  might  conspire 
to  raise  profits  and  wages  unduly  and  charge  the  bill  to  the  public  in 
higher  prices.  This  possibility  was  evidently  in  the  mind  of  Dr. 
Addison,  Minister  of  Reconstruction,  in  remarks  made  at  the  first 
meeting  of  the  national  council  of  the  pottery  industry.  While  capital 
and  labor  needed  to  be  organized  for  mutual  protection  and  develop- 
ment of  their  industry,  he  said,  they  must  not  be  hostile  to  the  public. 
Employers  and  employed  must  not  be  parties  to  an  unholy  alliance  at 
the  expense  of  the  consumer.  Such  a  system  could  not  last.  They 
wanted  the  three  sections — employer,  employed,  and  the  consuming 
public — united  in  a  great  bond  of  understanding  and  mutual  well-being 
that  would  be  promoted  by  national  councils.^ 

There  is  no  need  to  worry  about  this  point,  however,  at  least  until 
experience  demonstrates  that  labor  and  capital  can  be  so  harmonized 

^  London  Times,  January  12,   1918. 

55 


3*1 
ill 


-1; 


% 


\ 


by  joint  counselling  that  they  threaten  to  exercise,  together,  a  monoply 
power.  The  probabilities  are  much  against  any  ^reat  danger  in  this 
direction.  We  must  in  any  case  probably  come  to  far  greater  control 
of  prices  as  a  regular  thing  than  we  were  accustomed  to  before  the 
war.  If  this  regulation  is  not  done  on  an  equitable  and  reasonable 
basis  by  the  industries  themselves,  reducing  competitive  wastes  in  adver- 
tising, multiplication  of  styles  and  patterns,  and  duplication  of  effort,  it 
will  probably  be  done  by  governmental  action;  if  the  industry  itself  is 
to  regulate  prices,  rather  than  leave  them  to  the  anarchy  of  competition, 
it  will  be  better  that  labor  should  have  a  voice  in  the  matter  and  that 
the  machinery  to  that  end  should  be  developed  as  quickly  as  possible. 
Meanwhile  we  may  remember  that  the  government  is  ever  watchfully 
in  the  background  to  remind  an  unfair  industry  of  its  sins. 

The  National  Alliance  of  Employers  and  Employed — The  critic- 
isms above  noted  have  been  only  sporadic.  An  association  has  recently 
be^n  formed,  however,  which  seems  disposed  to  set  up  something  in 
the  nature  of  an  organized  opposition  to  certain  features  of  the  Whitley 
plan.  This  is  the  National  Alliance  of  Employers  and  Employed.  It 
was  established  at  the  end  of  1916,  "as  the  result  of  a  movement  which 
aimed  at  securing  an  improvement  in  the  relations  between  capital  and 
labor."  It  is  thus  an  unofficial  contemporary  of  the  Garton  Founda- 
tion and  the  Whitley  Committee. 

A  statement  of  its  purposes  and  activities  appeared  in  the  Times, 
November  31,  1917. 

Its  constitution  provides  for  the  personal  and  financial  support  of 
the  Alliance  to  be  given  by  employers'  association  and  trade  unions  on 
an  equal  basis.  The  executive  responsibilities  of  the  organization  are 
to  be  equally  shared  by  both  sides.  Members  of  the  general  public 
who  sympathize  with  the  objects  of  the  organization  may  become  sub- 
scribing members  for  a  small  sum. 

Its  principles — The  program  of  the  Alliance  was  drawn  up  by  a 
joint  committee  of  employers  and  workmen.  It  pledges  the  members 
to  endeavor  to  secure  improvement  in  industrial  conditions  on  the  fol- 
lowing lines: 

1.  A  living  wage  for  all  workers. 

2.  Regulation  of  the  hours  of  work,  especially  in  arduous 
occupations. 

3.  Adequate  wages  for  women,  and  equal  rates  with  men  if  work, 
skill,  and  output  are  equal. 

4.  Improved  workshop  conditions. 

5.  Satisfactory  housing  accommodation  for  workers. 

6.  Encouragement  of  workers  to  take  an  interest  in  the  efficiency 
and  success  of  the  works  in  which  they  are  employed. 

56 


7.  The  establishment  of  joint  committees  in  works  to  consider  the 
interest  of  the  industry. 

8.  Maximum  output  with  maximum  pay. 

9.  Continuity  of  employment  in  slack  times. 

10.  The  encouragement  of  trade  unionism  and  adherence  to 
agreements. 

11.  The  liberal  education  and  technical  training  of  children. 

The  basis  of  equal  responsibility  and  equal  administrative  authority 
of  employers  and  representatives  of  labor  in  any  proposal  put  forward 
by  the  Alliance  and  in  carrying  out  its  work,  is  the  salient  feature  of 
the  movement. 

The  Alliance  is  the  result  of  the  work  of  a  small  committee,  which 
for  some  months  did  not  include  any  employer  of  labor.  In  Septem- 
ber, 1916,  four  well-known  employers  met  four  leading  trade  unionists 
at  conferences  which  led  to  the  production  of  a  scheme  unanimously 
adopted  when  the  Alliance  was  first  founded. 

Public  conferences  and  meetings  of  employers  and  workmen  have 
since  been  held  to  consider  the  desirability  of  establishing  joint  com- 
mittees of  employers  and  employed  in  equal  numbers  affiliated  to  the 
Alliance  to  carry  the  objects  embraced  in  this  scheme  into  effect. 

Committees  have  been  established  in  many  places.  These  commit- 
tees are  represented  in  the  Central  Council  of  the  Alliance  by  an 
employer  and  a  workman  acting  together.  The  Central  Executive 
Committee  and  the  General  Committee  of  the  Council,  in  addition  to 
representatives  from  the  districts,  have  formed  committees  comprising 
the  official  representatives  of  nine  trade  unions  and  of  the  Federation 
of  British  Industries  and  Associated  Chambers  of  Commerce  of  the 
United  Kingdom.  Prominent  members  of  many  other  large  employers' 
federations  are  active  supporters  and  executive  members  of  the  employ- 
ers' side  of  the  Alliance.  It  is  stated  that  the  movement  has  received 
the  warm  support  of  the  rank  and  file  of  the  workers  in  all  of  the 
important  industries. 

Points  on  ztJiich  the  National  Alliance  criticises  the  JVhitley  pro- 
posals— The  National  Alliance  takes  issue  with  the  Whitley  proposals 
on  three  main  grounds :  First,  that  they  are  not  broad  enough  in  their 
scope,  in  that  they  do  not  provide  for  a  council  inclusive  of  all  indus- 
tries in  a  given  district,  which  would  discuss  a  broader  list  of  matters 
than  the  Whitley  councils  will  attend  to;  second,  that  the  Whitley 
councils  will  not  be  able  to  create  the  new  spirit  of  good  will  and 
co-operation  needed,  but  will  simply  continue  on  a  larger  basis  the 
conflict-attitude  of  the  hostile  camps  of  labor  and  capital ;  third,  that 
the  Whitley  plan  will  involve  the  continuance  of  state  control,  which 
should  be  removed   from  industry  as  soon  as  possible.     "After-war 

57 


rv 


s 


industry,"  says  Mr.  A.  H.  Patterson,  Secretary  of  the  Alliance,  "must 
have  self-government,  and  the  basis  of  that  self-government  must  and 
can  be  arrived  at  by  the  representatives  of  employers  and  employed 
working  together  with  an  equality  of  representation  and  free  from  out- 
side interference.  There  are  three  parties  concerned— capital,  labor 
and  the  community.  The  role  of  the  State  must  simply  be  that  of  a 
policeman  guarding  the  interests  of  the  community."^ 

The  Alliance  welcomed  the  Whitley  Report,  Mr.  Patterson  con- 
tinues, *'as  a  step  (though  only  a  step)  in  the  right  direction,  but  we 
have  consistently  urged,"  he  says,  "the  inadequacy  of  those  proposals 
in  that  they  are  neither  wide  enough  in  their  scope  nor  do  they  suf- 
ficiently realize  that  industrial  reconstruction  must  be  a  matter  for 
industry  itself  and  not  for  state  departments. "- 

The  Alliance's  positive  program  seems  admirable,  but  it  is  difficult 
to  believe  that  in  its  cry  for  laisscc  faire  it  is  not  barking  up  the  wrong 
tree.  It  is  open  to  question  whether  there  is  so  great  a  difference 
between  the  ideals  of  the  Alliance  and  those  of  the  Whitley  Committee 
as  the  Alliance  thinks.  Certainly  the  implication  that  the  Whitley  plan 
means  "industrial  reconstruction  by  state  departments"  is  not  borne  out 
by  the  Whitley  Reports  and  the  statements  of  the  Government. 

The  Industrial  Reconstruction  Council — \\'hile  the  Alliance  is  cry- 
ing to  the  Government,  "Hands  off,"  another  voluntary  organization, 
the  Industrial  Reconstruction  Council,  is  calling  on  the  Government  for 
more  speed  and  more  activity  in  bringing  employers  and  employed 
together. 

This  organization  had  its  origin  in  an  important  manifesto  issued 
on  October  10.  1917,  called  ''The  Olive  Branch  to  Labor,"  bearing  the 
signatures  of  more  than  forty  well-known  business  men  and  university 
professors  and  of  a  still  larger  number  of  officers  of  trade  associations.' 

Like  the  National  Alliance  of  Employers  and  Employed,  the  Indus- 
trial Reconstruction  Council  preaches  the  doctrine  of  self-governn>ent 
for  industry  and  the  reconstruction  of  industry  by  industry  itself. 

At  present  the  interest  of  the  Council  is  centered  in  the  formation 
of  joint  industrial  councils,  this  being  considered  the  first  step  toward 
the  goal  in  view.  Through  literature  and  newspaper  propaganda,  lec- 
tures, and  other  public  meetings,  it  is  spreading  the  gospel  of  co-opera- 
tive management.  Its  work  has  been  recognized  by  the  Government 
and  it  is  working  in  close  relation  with  the  various  government 
departments.* 

'  Letter   in    London   Times,   October  21,   1918. 

'  See  also  an   intere";ting  exposition   of  the   Alliance's  position,  by  its  Trades   Union   and 
Labor   Organizer,   Mr.   T.    Earnest   Jackson,   in   the   Spectator,   September   28,    1918. 

"London    Times.    October    10,    1917.      For    the    main    content    of    the    "Olive    Branch    to 
Labor"    see   Appendix   IL 

*  Tnited    States    Bureau    of    Lalwr    Statistics.    Monthlx    Labor   Rerie'w,    September.    1918. 
pp.   64  66.  '  F  .  . 

58 


The  Council  feared  that  the  opportunity  to  bring  labor  and  capital 
together  was  of  an  evanescent  character.  In  its  announcement 
(October  10,  1917)  it  said: 

The  opportunity  for  the  course  which  we  suggest  will  pass 

with  the  war,  as  the  relations  between  the  Government  and  trade 

are  then  expected  to  become  less  intimate.     We,  therefore,  press 

for  the  acceptance  of  the  following  principle: 

That  any  commercial  or  industrial  matter  ought  not  to 
interest  the  Government  unless  it  interests  both  labor  and 
capital,  and  the  consequent  adoption  of  the  following  policy : 

That  the  Government  will  undertake  to  obtain  and 
wherever  possible  accept  advice  on  these  matters  from  bodies 
equally  representative  of  both  labor  and  capital. 

The  Federation  of  British  Industries — Another  organization  which 
has  considered  the  Whitley  Report  is  the  Federation  of  British  Indus- 
tries. This  body  is  a  powerful  combination  of  employers'  associations, 
firms,  and  individuals.  Its  membership  represents  over  9,000  firms  in 
every  trade  and  industry,  and  on  its  central  council  are  represented 
75  per  cent  of  the  important  industries  of  Great  Britain,  employing 
between  three  and  four  million  workmen  and  having  a  capital  of  over 
£2,000.000,000.^    One  of  the  objects  of  the  Federation  is  stated  to  be: 

The  promotion  and  encouragement  of  free  and  unrestricted 
communication  and  discussion  between  masters  and  workmen  with 
a  view  to  the  establishment  of  amicable  arrangements  and  relations 
between  masters  and  workmen,  and  to  the  avoidance  and  settle- 
ment of  strikes  and  all  other  forms  of  industrial  warfare  between 
masters  and  workmen. 

Like  the  National  Alliance  of  Employers  and  Employed,  the  Fed- 
eration is  somewhat  skittish  in  the  presence  of  Government  interest  in 
industrial  organization.  W' hile  admitting  and  suggesting  "that  the  Gov- 
ernment ought  to  go  far  to  recognize,  and  give  an  official  standing  to, 
organizations  representative  of  employers  and  w-ork  people,  respect- 
ively, and  to  encourage  the  development  of  such  organizations,"  the 
Federation  thinks  "it  will  be  readily  admitted  that  the  construction  of 
an  organization  on  the  line  suggested  is  a  delicate  matter"  and  "notes 
with  satisfaction  .  .  .  that  it  is  not  contemplated  that  the  Government 
shall  actively  interfere."  It  holds  that  it  is  most  important  that 
there  should  be  no  suggestion  whatever  of  Government  pressure 
or  coercion  and  that  each  particular  trade  should  be  free  to  build  up 
its  own  organization  voluntarily  and  on  lines  best  suited  to  its  peculiar 
needs. 

*  United  States  Bureau  of  Labor  Statistics,  Monthly  Labor  Review,  October,  1918,  p.  44. 

59 


H 


I 


Its  proposals—Tht^  Federation  suggests  a  system  of  councils  dif- 
ferent and  somewhat  more  extensive  in  scope  than  those  in  the  Whitley 
Committee's  mind,  but  with  less  positive  aims  and  functions  so  far  as 
co-operative  management  between  employers  and  employees  is  con- 
cerned.    It  is  proposed  that  the  basis  of  the  scheme  should  be : 

( 1 )  Trade  councils  of  masters  and  men,  that  is  to  say,  that  each 
trade  or  section  of  an  industry  should  form  a  council  represetitative 
of  the  employers'  organization  or  organizations,  and  of  the  trade  union 
or  trade  unions  concerned  with  such  particular  trade  or  section  of  an 
industry.  This  council  should  have  the  power  of  dealing  with  agree- 
ments of  all  kinds  and  any  other  matters  appropriate  to  the  particular 
trade  or  section  of  industry. 

(2)  District  councils,  if  set  up,  would  be  of  main  value  in  consti- 
tuting "a  court  of  arbitration  in  the  case  of  any  differences  between 
employers  and  employed  in  the  trade  in  the  district,  having  regard  to 
the  general  and  any  peculiar  conditions  obtaining  in  that  district." 
The  Federation  is  opposed  to  devolving  any  constructive  work  upon 
district  councils  or  works  committees. 

(3)  Above  the  trade  councils  it  proposes  the  institution  of  councils 
of  industry  consisting  of  representatives  of  employers  and  employed  in 
each  group  of  trades  forming  an  industry.  (4)  Finally,  over  all,  there 
should  be  a  national  industrial  council  consisting  of  the  representatives 
of  the  employers  and  employed  in  all  industries. 

Attitude  toward  zvorks  committees — With  regard  to  the  functions 
of  works  committees  the  Federation  takes  a  conservative  position.  In 
the  first  place,  it  holds  that  they  should  be  entirely  voluntary  in  the  case 

of  each  individual  firm  and  not  in  any  way  officially  constituted an 

opinion  with  which  no  issue  need  be  taken.  Secondly,  they  should 
consist,  the  Federation  holds,  entirely  of  representatives  of  the 
employees.  Apparently  the  L^ederation  is  unwilling  to  countenance 
the  organization  of  joint  works  committees.  Third,  where  instituted, 
their  duties  should  be  confined  to  ''reporting  to,  or  receiving  from,  the 
management  complaints  regarding  breaches  of  any  agreements  which 
may  have  been  made  between  the  employers  and  employed."  Thus,  in 
the  Federation's  opinion,  works  committees  should  be  nothing  but 
grievance  committees ;  those  positive  functions  which  the  Whitley  Com- 
mittee, the  Ministry  of  Labor,  and  employers  like  Mr.  Renold  look 
upon  as  a  legitimate,  and  indeed,  the  fruitful,  field  for  committee  action, 
are  apparently  either  left  out  of  account  or  regarded  with  disfavor. 

The  tone  of  the  Federation's  Report  on  industrial  councils  seems 
to  indicate  that  the  Federation  is  not  so  much  interested  in  positive 
co-operative  management  as  it  is  in  the  conciliation  and  arbitration  of 
industrial  disputes  : 

60 


The  councils  of  industry  and  the  national  industrial  council 
would  provide  suitable  courts  of  appeal  from  the  trade  councils  in 
cases  of  differences  l>etween  employers  and  employed  of  any  trade 
dispute  which  cannot  be  settled  by  the  trade  council.  It  is  not 
necessary  to  suggest  exact  details  of  procedure,  nor  is  it  intended 
to  interfere  in  any  way  with  existing  conciliatory  boards  or  other 
arrangements  for  settling  disputes,  but  rather  to  build  up  similar 
organizations  in  industries  where  they  do  not  at  present  exist  or 
only  to  supplement  existing  organizations. 

In  general,  the  Federation  holds  that  "underlying  these  suggested 
councils  should  be  the  centralization  of  policy  and  the  decentralization 
of  administration."  Further,  that  consideration  of  general  questions 
should  be  left  to  the  national  industrial  council,  ''which  should  dele- 
gate to  the  councils  of  industry,  and  possibly  to  the  trade  councils,  the 
consideration  of  matters  of  peculiar  trade  interest  in  such  cases  as  the 
national  industrial  council  may  think  desirable."  The  final  decision  of 
all  matters  of  general  policy  should  be  taken  by  the  national  industrial 
council  after  providing  reasonable  opportunities  of  criticism  on  the 
part  of  councils  of  industry  and  trade  councils.  Nothing  in  this  sug- 
gestion, however,  is  intended  to  prevent  trade  councils  or  councils  of 
industry  from  initiating  the  consideration  of  any  matter  of  general 
interest. 

While  the  pronouncement  of  the  Federation  does  not  show  any 
enthusiasm  for  works  committees  it  is  important  to  note  that  all  the 
proposed  councils  are  composed  of  representatives  of  trade  unions  and 
employers'  associations.  This  is  an  additional  indication  that  plans  for 
the  organization  of  British  industry  are  on  a  scale,  and  projected  with 
a  thoroughness,  not  possible  as  yet  to  contemplate  for  this  country-.  It 
also  indicates  that  quite  as  much  attention  is  being  given  to  the  organ- 
ization of  industry  from  the  top  as  to  the  institution  of  co-operative 
management  in  individual  plants,  and  that  British  employers,  in  an 
organization  comparable  in  its  scope  and  function  to  the  Chamber  of 
Commerce  of  the  United  States,  are  not  only  freely  admitting  that 
labor  should  have  a  voice  in  industrial  management,  but  are  laying 
plans  by  which  that  voice  may  be  heard. 

Despite  the  fact,  also,  that  its  own  proposals  are  somewhat  differ- 
ent from  those  of  the  Whitley  Committee,  at  a  meeting  held  early  in 
November,  1918,  the  Federation  unanimously  adopted  a  motion  record- 
ing approval  of  the  general  principles  underlying  the  Interim  Report 
and  inviting  the  group  and  sub-group  committees  of  the  Federation  to 
consider  how  those  principles  could  be  adopted  in  their  own  industries.* 

*  Electrician,  November  8,   1918,  p.   581. 

61 


6.    The  Government's  Purpose. 

There  are  clear  intimations  not  only  in  the  Whitley  Reports  them- 
selves, but  in  the  October  letter  of  the  Minister  of  Labor,  as  well  as 
in  other  official  utterances,  that  the  Government  had  in  view  no  fleeting 
or  superficial  end  in  making  the  proposal  for  co-operative  management ; 
and  the  publications  of  the  various  voluntary  associations  above  men- 
tioned indicate  that  the  aims  of  the  Government  were  also  in  a  general 
way  those  of  the  public  at  large. 

The  first  purpose  is  to  provide  a  means  of  preventing  the  rise  of 
industrial  disputes  and  of  settling  amicably  and  without  cessation  of 
production  such  disputes  as  do  arise. 

The  second  is  to  recognize  the  riglu  of  the  worker  to  a  voice  in 
industrial  government. 

The  third  desire  is  to  place  industries  in  position  where  the  Gov- 
ernment control  which  has  necessarily  developed  during  the  war  can 
be  withdrawn  with  safety  to  all  concerned.  Far  from  intending  an 
increase  in  governmental  interference,  the  opposite  is  the  case.  Dr. 
Addison,  Minister  of  Reconstruction,  in  an  address  before  a  meeting 
of  employers'  associations  and  trade  unions  in  the  leather  goods  indus- 
tries, April,  1918,  said  that  the  Ministry  wished  control  to  devolve  upon 
mdustry  itself.  The  objects  of  the  Ministry,  he  said,  were  directed  to 
one  end — to  promote  the  restoration  of  the  industry  as  quickly  as  pos- 
sible after  demobilization.  The  Government  wanted  the  industry — and 
this  may  be  named  as  a  fourth  purpose — to  have  ready  an  organization 
of  responsible  men  who  could  make  representations  to  the  Board  of 
Trade  regarding  their  industry,  and  hoped  that  such  an  organization 
would  be  a  permanent  feature.^  Speaking  before  the  first  meeting  of 
the  National  Council  of  the  Pottery  Industry,  January  11,  1918,  Dr. 
Addison  suggested  that  after  the  war  the  question  of  rationing  raw 
material  and  machinery  would  arise.  This  could  be  more  eflfectively 
done  by  the  industries  themselves  if  fully  organized  with  district  and 
national  councils  than  by  the  government.' 

But  underlying  all  these  desires  undoubtedly  rests  the  conviction 
that  co-operative  management  and  industrial  solidarity  are  necessary  to 
the  development  and  maintenance  of  the  highest  degree  of  industrial 
efficiency,  which  will  be  necessary  if  England  is  to  hold  her  own  in 
post-bellum  commercial  competition.  Sir  Albert  Stanley,  President  of 
the  Board  of  Trade,  at  the  meeting  of  the  leather  industry  above  men- 
tioned, said  that  the  experience  of  the  past  would  be  of  little  advantage 
in  facing  the  conditions  of  the  new  world,  and  there  must  be  an  organ- 
ization of  industry  and  trade  to  deal  with  problems  as  they  arose. 
However    keen    competition    was    before    the    war.    it    was    nothing 


»  London  Times,   April   13.   1918. 
*  London  Times,  January  12,   1918. 


62 


compared  with  the  competition  which  would  arise  after  it.  The  Gov- 
ernment was  prepared  to  do  its  share  in  promoting  co-operation,  and 
employer  and  employed  must  act  together,  breaking  away  from  the  old 
traditions  of  secrecy  and  letting  the  employees  understand  the  problems 
of  their  trade.  If  the  workers  knew  what  was  coming,  they  would  be 
a  long  way  on  the  road  towards  the  elimination  of  strikes.  If  employ- 
ers and  employees  would  form  a  small  committee  representative  of 
their  interests,  he  would  undertake  on  behalf  of  the  Board  of  Trade  to 
keep  that  committee  fully  advised  on  all  matters  on  which  their  indus- 
try desired  information.  Mr.  Roberts,  at  the  same  meeting,  said  that 
all  plans  for  the  re-establishment  of  trade  would  be  doomed  to  failure 
unless  they  established  harmonious  relationship  between  employers  and 
employed.  The  joint  industrial  councils  were  necessary  not  only  to 
employers  and  employed,  but  to  the  State.  Unless  they  acted  together, 
other  people  would  get  the  trade  which  should  come  to  England. 
In  the  past  fiscal  and  other  matters  had  been  made  party  questions. 
That  was  entirely  wrong,  and  he  could  conceive  that  modifications  were 
necessary.  When  representative  trade  bodies  proved  to  him  there  was 
such  a  necessity,  he  cared  not  for  party  label  or  party  cries,  and  would 
say,  "Let  us  serve  the  interests  of  our  trade,  because  it  represents  the 
highest  interest  of  the  State  as  a  whole. "^ 

«  London   Times,   April    13,    1918. 


63 


1 


Chapter  IV.     Works  Committees 


1 .    Nome  n  c l at  u  r  e 

The  terms  "works  committee"  and  "sliop  committee"  have  been 
used  interchangeably  and  rather  loosely.  So  nsed.  either  is  applied  to 
any  committee  of  workmen  or  composite  committee  of  representatives 
of  workmen  and  of  employers,  which  deals  with  works  organization, 
processes,  and  other  matters  pertaining  to  the  mutual  interests  of 
employees  and  employer.  The  term  "shop  committee,"  however, 
should  be  applied  only  to  committees  representing  the  men  in  a  given 
shop  or  department  of  a  |)lant,  e.  g.,  the  machine  shop,  the  foundry, 
or  the  erecting  department.  Where  the  men  of  a  given  trade  in  a 
shop  or  a  whole  plant  organize  a  committee  to  look  after  their  par- 
ticular craft  interests,  such  committee  should  be  called  a  "craft  com- 
mittee." The  term  "works  conunittee"  may  be  used  in  both  a  generic 
and  a  specific  sense ;  generically,  to  cover  any  committee  of  workmen, 
or  of  workmen  and  employers,  in  a  plant ;  and  specifically,  to  designate 
the  one  committee  which  may  be  instituted  (regardless  of  whether 
shop  and  craft  committees  are  in  existence)  to  represent  all  the  shops, 
trades,  and  interests  in  the  plant. ^  There  is  also  some  confusion  in  the 
use  of  the  term  "joint  committee."  The  awards  of  the  Macy  Board 
which  provide  for  the  establishment  of  committees  call  a  works  com- 
mittee made  up  of  craft  committees  a  "joint  shop  committee,"  because 
it  represents  all  the  crafts  jointly.  Another,  and  better,  use  of  the 
term  "joint"  confines  it  to  committees  upon  which  both  employers  and 
employees  are  represented.  This  seems  to  be  the  ordinary  English 
usage. 

2.    The  Ortctx  and  Development  of  Works  Committees 

Organised  labor — It  is  evident  that  the  institution  of  shop  or  of 
works  committees  will  be  easiest  where  both  employers  and  workmen 
are  already  accustomed  to  collective  action  through  trade  union  organi- 
zation. This  fact  explains  the  comparatively  large  number  of  works 
committees  in  English  establishments,  and  their  paucity  in  American 
industry.  The  English  employer  has  learned  to  accept  and  to  recog- 
nize organized  labor.     It  is  safe  to  say  that,  as  a  result,  the  relation 

*  What  the  Shipbuilding  Labor  Adjustment  Board  (the  "Macy  Board")  has  designated 
as  a  "joint  shop  committee,"'  the  English  more  properly  call  a  "works  committee,"  in  the 
specific  sense.  See,  for  illustration,  the  fifth  section  of  the  Macy  Board's  decision  and  award 
for  the  North  Atlantic  and  Hudson  River  Shipyards,  April  6,  1918,  and  Section  IV  of 
the  Decision  as  to  W^ages,  Hours  and  Other  Conditions  in  Atlantic  Coast,  Gulf,  and  Great 
Lakes  Shipyards,  October  1,  1918.  The  same  section  is  also  in  the  Decision  for  the  Pacific 
Loast   Shipyards,  same  date. 

64 


I 


between  the  average  English  corporation  and  its  employees  is  on  the 
whole  healthier  in  tone  than  is  the  case  in  the  United  States.  While 
more  radical  in  its  demands,  and  with  greater  political  adhesion  and 
power  than  American  labor,  English  unionism  has  been,  on  the  whole, 
more  conservative  in  its  methods.  Peaceful  collective  bargaining  and 
opjx^rtunity  for  the  development  of  co-operative  effort  between 
employers  and  employees  are  further  developed  in  England  than  in 
this  country.  This  fact,  together  with  the  grave  industrial  situation 
produced  by  the  w^ar,  has  played  an  important  part  in  the  development 
of  the  strong  movement,  now  in  full  swing,  for  works  committees  and 
industrial  councils  in  England.  The  unions,  the  employers'  associa- 
tions, and  the  Government,  as  well  as  private  associations,  as  we  have 
seen,  have  helped  the  movement  along. 

Works  committees  have  evolved  naturally  out  of  certain  shop 
practices  and  organizations  of  union  labor.  Committees  of  workmen 
in  the  individual  trades  of  a  given  shop  have  existed  from  an  early 
date.  They  have,  however,  been  sporadic,  their  prevalence  fluctuating 
with  the  changing  fortunes  of  labor  in  its  long  struggle  to  gain  legal 
recognition  of  its  right  to  organize.^  The  earliest  instance  of  "shop" 
and  "craft"  committees  was  probably  the  "chapel,"  a  committee  of 
compositors  in  English  printing  establishments.  References  to  such 
committees  are  found  as  early  as  1683  and  they  were  probably  in 
existence  considerably  before  that.^ 

Organized  labor,  since  it  attained  a  degree  of  stability  and 
influence,  has  very  generally  maintained,  both  in  England  and  America, 
some  sort  of  arrangement,  however  informal,  by  which  the  interests 
of  the  men  of  the  same  trade  on  a  job,  or  even  of  all  the  men  of  various 
crafts  in  a  given  shop,  could  be  looked  after  by  labor  representatives. 
The  business  agent  or  "walking  delegate"  is  a  universal,  if  not  always 
welcome,  official  of  the  local  union,  employed  and  paid  by  its  mem- 
bers, to  have  oversight  of  their  interests  in  all  union  plants  and 
jobs  in  the  locality,  and  to  protect  them  from  unfair  treatment  on  the 
part  either  of  employers  or  of  other  unions.  The  business  agent  has 
played  a  large  but  not  always  discreet  and  honorable  part  in  the  annals 
of  American  trade  unionism,  and  perhaps  holds  a  larger  share  of 
attention  than  should  be  his  due,  both  in  the  serious  literature  of  trade 
unionism  and  in  a  certain  class  of  fiction  that  has  drawn  its  material 
and  its  motif  from  the  relations  between  capital  and  labor. 

^  See   Sidney  and   Beatrice  Webb,  History  of  Trade  Unionism. 

*  Works  Committee,  a  Report  of  an  Inquiry  by  the  Ministry  of  Lal)or,  London,  1918 
(Industrial  Reports,  No.  2),  p.  3.  This  Report  has  been  drawn  upon  freely  for  information 
concerning  the  source,  the  organization,  the  functions,  and  the  actual  operation  of  works 
committees  in  England.  It  will  hereafter  be  referred  to  simply  as  "Works  Committees.** 
Page  references  are  given  to  the  English  edition.  It  has  been  reprinted  in  full  by  the 
Emergency    Fleet   Corporation,   Philadelphia,    1919. 

65 


The  stcivard~X\(t\o\\  the  business  agent,  and  in  more  intimate  con- 
tact with  the  men  and  their  job.  are  the  craft  or  shop  stewards.    The 
steward  is  himself  a  workman  and  gives  his  time  and  attention  only 
incidentally  to  the  representation  of  labor's  interests.    It  is  his  function 
to  look  after  the  conditions  of  work,  etc.,  affecting  the  men  of  his 
trade  in  the  shop  or  on  the  job  {e.  g.,  in  the  building  trades).    On  the 
one  hand,  he  confers,  as  the  spokesman  of  the  men,  with  the  foreman 
in  event  of  complaint,  and  on  the  other,  reports  to  the  business  agent 
matters  which   he   thinks  should  have  that  official's  attention.     The 
duties  of  the  steward  in  English  shops  are  briefly  described  as  follows : 
"Apart  from    (T)   functions  obviously  intended  to  sustain  the  fabric 
of  the  trade  union,  the  collection  of  dues,  the  interrogation  of  defaulters 
and  newcomers,  and  the  like,  the  duties  of  shop  stewards  are  stated 
m  the  rules  of  different  unions  to  include   (2)  the  regular  supply  to 
the    branch    or    district    committee    of    information    respecting    any 
encroachment  upon  recognized  trade  union  conditions,  participation  in 
deputations   to   the  management   in   connection   with   grievances,   the 
calling  of  shop  meetings  of  the  members  to  discuss  grievances,  etc' 
The  sending  of  deputations  to  the  management  has  naturally  led  to  the 
formation  of  committees,  in  which  representatives  of  different  trades 
may  jom.     Composite  committees  of  this  sort  are  sometimes  suggested 
by  the  management  to  avoid  the  necessity  of  meeting  separately  a  num- 
ber of  craft  committees  all  of  whom  may  be  concerned  with  the  same 
matter.    In  the  building  trades,  loosely  organized  committees  have  for 
years  existed.     It  has  been  common  for  the  craft  stewards  to  come 
together,  elect  a  secretary,  and  make  representations  to.  or  be  consulted 
by,  the  employers,  on  questions  such  as  the  proper  distrilmtion  of  work 
( jurisdiction  disputes),  the  arrangement  of  the  job  so  that  inside  opera- 
tions may  be  reserved  for  bad  weather,  and  extra  payment  for  work 
done   in  especially   inconvenient  situations.     Similar  combinations  of 
shop  stewards  have  been  attempted  at  different  times  in  other  indus- 
tries, with  varying  success.     In  some  cases,  notably  in  engineering  and 
shipbuilding  establishments,  where  such  practices  have  been  success- 
fully applied,  the  initiative  has  come  from  the  management:-     It  is 
obvious,  however,  that  such  committees  can  be  classed  as  works  com- 
mittees only  as  the  term  is  used  in  a  very  wide  sense. 

In  some  industries,  notably  in  furniture  manufacturing  (still  speak- 
ing of  English  conditions)  the  stew^ards  exercise  the  function  of 
calling  shop  meetings.  These  have  been  in  some  cases  a  source  of 
works  committees  in  the  proper  sense  of  the  term.  Most  English 
unions  make  provision  in  their  rules  for  shop  meetings,  but  only  mem- 
bers of  the  union  attend.  During  the  war,  however,  the  term  "shop 
meeting"  has  come  to  have  another  significance,  namely,  a  meeting  of 


>\i 


\ 


'  Works   Committees,  p.    3. 
*  Works   Committees,    p.    5. 


66 


all  the  trades  in  the  plant.  The  meetings  are  regular  (monthly)  and 
the  stewards,  not  necessarily  from  all  the  trades,  make  their  report 
about  membership  and  the  like.' 

Piece-rate  committees — Works  committees  appear  to  have  had 
their  origin,  in  certain  instances,  also,  in  previously  established  com- 
mittees for  the  arrangement  of  piece-rates.  The  piece-rate  committees 
are  craft  or  shop  committees,  rather  than  w^orks  committees  in  the 
specific  sense,  and  are  informal  in  their  organization.  Such  committees 
have  long  existed  in  the  upholstering  and  pottery  industries.  During 
the  war,  payment  by  piece-rate  has  been  introduced  widely  in  the 
engineering  establishments  of  England  and  Scotland.  The  extension 
of  piece-work  and  the  growth  of  the  method  of  collective  bargaining 
in  the  shop — by  works  committees  or  stewards — have  gone  on  side  by 
side,  and  it  would  appear  that  to  a  considerable  degree  the  one  is 
the  immediate  cause  of  the  other.  Even  where  detailed  lists  of  piece- 
work rates  are  in  force,  there  arise  occasions  for  interpretation  wdiich 
may  require  some  sort  of  committee.  In  the  mining  industry,  in  certain 
districts,  the  method  of  joint  committees  has  been  in  operation  a  long 
time,  along  wnth  the  Joint  District  Board.  Pit  committees  are  not, 
however,  works  committees,  except  in  those  cases  where  the  enginemen 
and  other  workers,  who  commonly  belong  to  other  unions,  are  members 
of  the  local  Miners'  Association.^ 

*  For  further  indication  of  the  functions  of  stewards,  see  Appendix  III.  Agreement 
between  the  Engineering  Employers'  Federation  and  Trade  Unions  in  Great  Britain.  This 
document  throws  light  on  what  might  become  the  position  and  functions  of  "business  agents" 
in  this  country. 

'Works  Committees,  p.  7.  Pit  committees  are  also  in  existence  in  America.  Their  duties 
and   limitations  are  illustrated  in   the  following: 

RESOLUTION  NUMBER  EIGHT 
Settlement  of  Disputes — Duties  and  Limitations  of  Pit  Committees 
(a)  The  duties  of  the  pit  committee  shall  be  confined  to  the  adjustment  of  disputes 
between  the  pit  boss  and  the  miners  or  mine  laborers  arising  out  of  this  agreement  or 
any  local  agreement  made  in  connection  herewith.  Where  the  pit  boss  and  said  miners 
or  mine  laborers  have  failed  to  agree,  the  pit  committee  and  the  pit  boss  are  empowered 
to  adjust,  and  in  case  of  their  disagreement  it  shall  be  referred  to  the  superintendent 
of  the  company  and  the  president  of  the  local  union,  or  local  executive  board,  of  not 
more  than  five  members,  either  the  superintendent  or  the  local  president  having  the  right 
to  demand  the  local  executive  board.  The  meeting  of  said  board  not  to  be  held  while 
the  mine  is  in  operation;  and  should  they  fail  to  adjust  it,  it  shall  be  referred  in  writing 
to  the  president  of  the  Iowa  Coal  Operators'  Association  and  the  president  of  District 
No.  13,  U.  M.  W.  of  A.,  who  may  decide  the  matter  either  in  person  or  by  repre- 
sentatives; their  decisions  shall  be  subject  to  the  review  and  approval  of  the  presidents; 
should  the  presidents  fail  to  agree,  they  must  either  submit  the  matter  to  arbitratioii 
or  convene  the   joint   board   and   submit   in   writing  the   question   in   dispute. 

No  case  of  discharge  shall  be  submitted  to  the  joint  board,  and  in  all  cases  the 
miners  or  mine  laborers  and  parties  involved  (except  discharged  employees),  must 
continue  at  work  until  a  final  decision  is  reached  in  the  manner  above  set  forth. 

(The  joint  board  shall  consist  of  the  executive  committee  of  the  Iowa  Coal  Operators' 
Association    and   the    Executive    Board    of   District   No.    13,    U.    M.    W.    of   A.) 

(6)  If  any  employee  doing  day  work  shall  cease  work  because  of  a  grievance  which 
has  not  been  taken  up  for  adjustment  in  the  manner  provided  herein,  and  such  action 
shall  seem  likely  to  impede  the  operation  of  the  mine,  the  pit  committee  shall  assist  the 
company  in  obtaining  a  man  or  men  to  take  such  vacant  place  or  places  at  the  scale 
rate  in  order  that  the  mine  may  continue  at  work.  In  case  the  mine  is  shut  down  in 
violation  of  these  agreements,  or  any  of  them,  the  organization  will  at  all  times  furnish 
all  the  men  required  by  the  operator  at  the  scale  rate  to  properly  care  for  the  mine. 

(From  agreement  between  the  members  of  District  No.  13,  United  Mine  Workers 
of  America  and  the  members  of  the  Iowa  Coal  Operators'  .\ssbciation,  April  1.  1916. 
to    March   21,    1918.)  »       »-  .  . 

67 


It  thus  appears  that  whatever  the  causes  of  the  growth  of  the 
committee  idea  in  England  in  the  past  year  or  two,  the  usual  founda- 
tion for  the  actual  establishment  of  works  committees  has  been  some 
previously  existing  committee  of  shop  or  craft  stewards.  It  should 
be  noted,  too,  that  the  loss  of  the  right  to  strike  and  the  many  new- 
questions  which  the  war  has  raised  have  greatly  enhanced  the  impor- 
tance of  the  shop  steward.  Another  important  basis  has  been  welfare 
committees. 

Even  before  the  w^ar,  several  large  manufacturing  firms  in  Eng- 
land  had  made  progress  toward  a  system  of   shop  and  works  com- 
mittees.     For   instance,   in   the   Hans    Renold   Company,    Ltd..    Man- 
chester, an  engineering  firm  employing  1000  men  and  1600  women,  a 
social  union  was  formed  in  1910.     This  led,  in  1915  or  1916,  first  to 
the  formation  of  a  joint  welfare  committee  and  then  to  a  committee 
of  shop  stewards.     The  Rolls-Royce  Company,  manufacturing  motor 
cars,  and  employing  4500  men  and  1500  women,  had  a  formal  organiza- 
tion of  shop  stewards  from  alx)ut  1012.     Barr  &  Stroud,  of  Glasgow, 
1250  employees,  have  had  shop  committees   since   1900,  and  a  joint 
industrial  committee  since  1916.    H.  O.  Strong  &  Son,  a  small  engineer- 
ing firm  in  Bristol,   for  several  years  followed  the  practice  of  meet- 
ing all  their  men  once  a  month  to  discuss  matters  connected  with  the 
establishment  which  seemed  to  require  examination.     At  the  end  of 
1915  this  practice  was  abandoned  because  the  management  felt  that 
too  much  time  was  being  wasted  in  discussion  of  irrelevant  matters 
and  that  real  grievances  did  not  freely  come  out  in  the  presence  of  the 
whole  body  of  employees.^     In  place  of  the  monthly  meetings  a  joint 
works   committee   was,  at   the   management's   suggestion,   established, 
which  the  management  has  found  "of  the  greatest  service  in  conducting 
the  business  of  the  works."-     Guest,  Keen  and   Xettleford,  a  large 
engineering  firm  of  Birmingham,  instituted  an  appeals  committee  in 
1914,  after  a  series  of  strikes  of  its  women  employees,  and  in  1916 
added  a  Central  Control  Board  of  25  or  30  meml>ers.     An  unnamed 
establishment  manufacturing  motor  cars  and  aeroplanes  instituted  a 
works  committee,  as  the  result  of  a  strike,  in  1908.    "The  directors  had 
had  no  idea  of  the  trouble,  and  in  order  that  in  tlie  future  such  a 
position  should  be  made  impossible  the  works  committee  was  formed."  ' 

Importance  of  co-operation  on  employer's  part — A  survey  of  the 
cases  in  which  English  firms  have  established  works  committees  shows 
the  importance  of  co-operation  and  encouragement  on  the  part  of  the 
employer.  Indeed,  the  employer  must  often  take  the  initiative.  While 
English  employers,  because  of  the  fact  that  organized  labor  in  England 
is  of  longer  standing  and  in  some  respects  more  conservative  than  in 

'  Works    Committees,    pp.    77,    78. 
*  Works   Committees,   p.  80. 
J^VVorks   Committee«?,   p.    71.      The   experience   and   opinions   of    KnRlish    firms   with    regard 
to   Works   Committees   is  given   in    full    in   the   Report   on    Works   Commi  tees.   pp.    51-142. 

68 


I 


■»^w  <•  '      9 


America,  have,  speaking  in  general,  perhaps  had  a  kindlier  feeling  for 
trade  unions  and  more  cordial  relations  w^ith  them  than  have  American 
employers,  it  needed  the  stimulus  of  the  war  and  the  necessity  of 
finding  basis  and  incentive  for  continuous  maximum  output,  to  lead 
employers  to  fuller  consideration  of  the  importance  of  the  w^orker's 
psychology  and  his  desire  for  a  voice  in  the  determination  of  working 
conditions.  It  is  probable,  also,  that  the  workers  have  been  the  more 
ready  to  establish  committees  because  of  the  grave  questions  and 
menace  to  union  standards  w^hich  are  involved  in  dilution  and  the  war- 
time suspension  of  union  rules.  The  exigencies  of  w^ar  production, 
therefore,  have  been  the  chief  immediate  stimulus  to  the  formation  of 
works  committees.  While,  in  general,  shop  stewards,  and  in  some 
cases  welfare  committees,  have  formed  the  nucleus  for  the  develop- 
ment of  w^orks  committees,  the  motive  for  their  establishment  has  come 
from  the  new  problems  of  industrial  organization  and  control  w^hich 
have  necessarily  arisen  from  the  changed  condition  of  industry  in  war 
time.  Chief  among  these  questions  have  been  dilution,  absenteeism,  and 
methods  of  remuneration. 

Dilution — Dilution  has  at  no  time  in  the  United  States  assumed 
proportions  comparable  with  the  extent  to  w^hich  it  had  to  be  carried 
in  England.  In  England,  however,  the  matter  was  important  and  its 
bearing  on  the  need  of  works  committees  direct. 

To  gain  the  consent  of  the  National  Unions  was  not  in  itself 
enough  to  settle  the  question  of  dilution ;  for  it  is  obvious  that  in 
a  complicated  trade  such  as  engineering,  wath  its  many  varieties, 
questions  of  detail  might  arise  in  almost  every  works  which  needed 
some  machinery  for  their  solution.  This  has  led  to  the  introduc- 
tion of  dilution  committees  in  many  establishments.  These  com- 
mittees, consisting  of  the  representatives  of  the  workers  (mainly, 
of  course,  the  skilled  workers)  discuss  w^ith  the  management  to 
what  extent,  and  under  what  conditions  dilution  shall  be  intro- 
duced. Committees  of  this  character,  dealing  with  an  important 
range  of  economic  questions,  have  often  been  led  to  raise  other 
questions  than  that  of  dilution,  and  to  bring  forward  for  discus- 
sion with  the  management,  with  which  they  are  being  brought 
into  constant  contact  by  the  problems  of  dilution,  questions  and 
grievances  of  a  general  character.  Sometimes  the  committee  has 
remained  in  name  a  dilution  committee,  while  it  was  in  reality  a 
works  committee.  Sometimes  a  definite  change  has  been  made, 
and  the  dilution  committee,  with  more  or  less  change  in  its  com- 
position, has  been  turned  into  a  works  committee.  In  any  case 
the  problem  of  dilution  has  been  one  of  the  most  potent  forces 
in  forwarding  the  movement  toward  w^orks  committees.  Though 
there   has   been   a  marked  tendency   for  dilution  committees   to 

69 


develop  into  works  committees,  it  may  be  noted  that  in  one  or  two 

cases  the  dilution  committee   has   been    formed   after,  and   is  a 

sub-committee  of  the  works  committee.^ 

A  very  important  stimulus  to  the  formation  of  works  committees 
has  been  afforded  by  the  Reports  of  the  Whitley  Committee,  especially 
the  Interim  Report  on  Joint  Standing  Industrial  Councils,  and  the 
Supplementary  Report  on  Works  Committees,  and  by  the  Ministry  of 
Labor's  Inquiry  on  Works  Committees  (Industrial  Report  No.  2). 
Before  these,  the  Report  of  the  Carton  Foundation  doubtless  had  very 
considerable  influence. 

Non-union  collective  bargaining— \n  the  United  States  we   find 
no  such  consistent  record.    Even  before  the  new  problems  occasioned 
by  the  war,  however,  and  before  the  English  movement  began  to  attract 
attention  in  this  country,  the  existence  of  welfare  departments  and 
industrial    betterment    schemes    in    some    American    establishments, 
together  with  the  advent  of  the  employment  manager  with  his  wider 
human  understanding  of  the  tasks  involved  in  maintaining  a  competent 
working  force,  had  led  here  and  there  to  the  establishment  of  shop, 
or   even   of   works   committees.     Here,   also,   as    in    England,   where' 
organized  labor  was  recognized,  the  union  "shop  committee"  was  not 
uncommon,  but  as  a  rule  it  did  not  mean  that  the  men  had  any  essential 
part  or  "co-operation"  in  management.     In  other  cases,  some  of  them 
very  recent,  more  or  less  formal  and  involved  plans  have  been  promul- 
gated by  large  corporations,  with  the  evident  purpose  of  dealing  col- 
lectively with  their  own  employees  but  not  with  organized  labor  at 
large.      These    have   been   called,    not    inaptly,    "non-union    collective 
bargaining"  schemes.^ 

3.    Functions 

Demarcation  of  function  betiveen  zvorks  committees  and  district 
councils—In  the  Introduction  it  was  stated  that  the  functions  of  works 
conmiittees  include  not  only  the  consideration  of  grievances  but  also 
problems  of  works  organization,  production  methods,  shop  rules  and 
regulations,  "and,  in  short,  all  matters  which  affect  the  welfare  and 
spirit  of  the  workers  and  the  tone  of  the  relations  between  them  and 
their  employers."  Certain  phases  of  the  various  functions  which  the 
Whitley  Committee  names  as  within  the  scope  of  co-operative  manage- 
ment would  fall  to  the  works  committees  rather  than  to  national  or 
district  councils.     A  line  of  demarcation  must  be  drawn  between  the 

*  Works    Committees,    pp.    10,    11. 

70 


r\     , 


functions  of  works  committees  on  the  one  hand,  and  national  or  dis- 
trict councils  on  the  other — or,  in  this  country,  between  district  con- 
ferences of  unions  and  employers'  associations.  Generally  speaking, 
district  councils  or  conferences  are  for  the  purpose  of  fixing  conditions 
as  to  wages,  hours,  etc.,  in  a  whole  district  for  a  stated  period.  Where 
there  are  such  councils  or  conferences,  works  committees  can  consider 
such  matters  as  wage  scales  and  conditions  of  work  as  laid  down  in  the 
district  agreement  only  as  they  apply  to  a  given  plant.  Any  action  on 
such  matters  taken  by  a  works  committee  must  be  in  accord  with  the 
district  agreement.  Settlement  of  general  principles  governing  employ- 
ment rests  with  the  district  or  national  council  or  conference.  The 
application  of  these  principles  lies  with  the  works  committee. 
It  may  include  interpretation  of  piece-rates  in  special  conditions, 
grievances,  etc. 

Where  a  non-union  collective  bargaining  plan  is  adopted  these 
questions  of  demarcation  of  function  w^ill  not  arise — so  long  as  the 
plan  works,  but  the  company  and  the  employees  will  perhaps  lose 
something  in  not  being  a  part  of  the  district  or  national  organization 
of  their  industry. 

Regular  methods  of  negotiation  between  employers  and  employees; 
greater  share,  on  the  part  of  the  workers,  in  the  determination  of 
working  conditions ;  the  better  utilization  of  the  practical  knowledge  of 
workers ;  co-operation  in  carrying  into  effect  new  ideas  pertaining  to 
machinery,  processes,  and  organization;  co-operation  in  meeting  and 
handling  the  problems  which  post-bellum  reconstruction  will  bring  on ; 
certain  aspects  of  industrial  training  and  education — in  all  these 
matters  with  which  co-operative  management  at  large  may  be  con- 
cerned, the  works  committee  will  have  some  share. 

If  there  is  any  meaning  in  industrial  democracy  the  workers  will 
certainly  desire  a  voice  in  the  readjustment  of  wages  which  must  come, 
as  well  as  in  the  methods  by  which  war  industries  are  to  be  demobilized 
and  returning  soldiers  reintroduced  into  industry.  Re-arrangements 
of  the  standard  working  day,  questions  of  shifts,  adaptation  of  proc- 
esses introduced  in  wartime  through  dilution  of  labor,  methods  of 
training  and  questions  of  apprenticeship,  absenteeism,  labor  turnover, 
etc.,  are  all  matters  in  considering  which  a  well-established  joint  works 
committee  would  do  good  service  in  the  interests  of  peace  and 
efficiencv. 

Functions  ahi'ays  consultative— No  catalogue  could  include  all 
the  specific  matters  which  may  come  up  in  an  industrial  establishment. 
The  works  committee,  when  once  confidence  and  good  will  is  estab- 
lished, may  consider  almost  anything.  It  should  be  clearly  understood, 
how^ever,  and  reasonable  employees,  as  well  as  employers,  will  so 
understand   it — that   the    functions  of   works   committees  are  always 

71 


consultative,  and  not  executive,  except  as  power  may  be  delegated  to 
them  by  the  employers.  Until  the  time  comes,  if  it  ever  does  come, 
when  the  workers  own  and  operate  the  establishment— out-and-out 
co-operation— the  final  executive  responsibility  must  rest  with  the 
employers.  Co-operative  management  is  designed  on  the  one  hand  to 
give  the  workers  delegated  responsibility  for  the  administration  of 
certam  matters  as  to  welfare,  etc..  and  to  establish  a  substitute  for  the 
old  personal  contact  and  acquaintance,  now  long  since  lost,  between 
employer  and  employee,  and  on  the  other  hand,  through  this  contact 
and  co-operative  consideration  of  mutual  problems  to  make  the  task 
of  management  at  once  easier,  more  human,  and  more  likely  to  secure 
both  efficiency  and  a  square  deal. 

Functions  vary  zvith  type  of  committee— Tunzt\ons  will  naturally 
vary  with  the  type  of  committee,  as  will  also  methods  of  doing  business. 
Matters  involving  wage  interpretations,  processes,  etc.,  will  go  to  the 
mdustrial  committee,  while  "works  amenities"— welfare,  etc.— will  go 
to  the  welfare  committee.    A  joint  committee,  in  either  case,  can  pre- 
sent  recommendations  directly  to   the  management,  or  the  manage- 
nient's  representatives  on  the  committee  may  have  authority  to  accept 
recommendations  on  the  spot ;  or  again,  as  appears  to  be  the  case  In 
certam  instances  in  this  country,  the  committee  may  be  constituted  of 
employees  and  employer's  representatives  in  equal  numbers  and  decide 
issues  by  majority  vote.     It  is  only  in  rare  cases,  however,  that  this 
form  of  organization  and  procedure  is  advisable,  and  even  where  the 
constitution  of  the  committee  ("board,"  "council,"  or  whatever  it  may 
be  called)  provides  for  it— thus  giving  the  employees  equal  power  with 
the  employers  it  must  not  be  forgotten  that  the  constitution  has  at 
some  time  been  "granted"  by  the  employers,  and  may,  in  case  of  neces- 
sity, be  taken  away.     As  one  employer  expresses  it,  there  must  be  no 
"bunk"   in   the  establishment   of  co-operative  management.     A  clear 
understanding  that  in  the  last  resort  final  acceptance  or  veto  of  the 
committee's  actions  rests  with  the  higher  management  (and  ultimately 
with  the  directors  and  the  stockholders  of  the  company,  will  remove  any 
danger  of  "bunk." 

A  most  suggestive  discussion  of  works  committee  functions  is 
given  by  Mr.  C.  G.  Renold.^  After  noting  that  the  matters  to  be 
handled  by  works  committees  will  best  be  determined  by  experience 
and  common  sense,  which  will  also  dictate  the  distribution  of  diflferent 
classes  of  questions  among  the  diflferent  committees,  Mr.  Renold 
divides  questions  into  two  main  classes,  (a)  those  which  are  important 
chiefly  to  the  workers,  and  (b)  those  on  which  joint  discussion  would 

» Industry  and    Finance,    1917,  edited  by  A.    W.    Kirkaldy,   Ch.   IV. 

72 


1 


-^      » 


be  primarily  advantageous  to  the  management.  In  the  first  group  he 
places  questions  involving  collective  bargaining,  as  to  wages,  etc.,  griev- 
ances, general  shop  conditions  and  social  organizations. 

(1)  Wages — The  works  committee  may  insure  the  application  of 
standard  rates  to  individuals,  and  see  that  wage  scales  are  fairly 
applied,  promises  of  advancement  fulfilled,  and  apprentices,  upon  com- 
pleting their  time,  raised  to  the  standard  rate  by  the  customary  or 
agreed  steps. ^ 

(2)  Piece-work  rates— Here  the  committee  could  discuss  with  the 
management  detailed  methods  of  rate  fixing  as  applied  to  the  individual 
jobs  or  to  particular  classes  of  work,  as  well  as  investigate,  on  behalf 
of  the  workers,  complaints  of  inability  to  earn  the  standard  rate.  It  is 
doubtful,  however,  Mr.  Renold  thinks,  whether  the  works  commit- 
tee, on  account  of  possible  cumbersomeness,  could  ever  settle  detail  in 
these  matters.  He  thinks  a  better  plan  would  be  for  a  representative 
of  the  workers,  preferably  paid  by  them,  to  be  attached  to  the  rate- 
fixing  department  of  the  plant,  to  check  all  calculations  and  to  work 
in  the  employees'  interests  generally.  A  possible  answer  to  this  is  that 
if  the  records  of  the  rate-fixing  department  are  always  open  to  inspec- 
tion a  representative  of  the  employees  is  not  necessary. 

Piece-rate  committee— A  special  rate-fixing  and  rate-reviewing 
committee  may,  under  certain  conditions,  be  desirable.  In  such  a  com- 
mittee may  perhaps  be  found  a  way  of  harmonizing  the  demand  of 
trade  unions  for  collective  bargaining  and  the  presence  of  scientific 
management  in  the  plant. 

Two  striking  examples  of  rate-fixing  committees  may  be  men- 
tioned—one in  this  country,  one  in  England.  The  firm  of  Hart 
Schaflfner  &  Marx,  Chicago,  lodges  the  responsibility  for  making 
piece-rate  primarily  in  its  Trade  Board.  The  following  description 
of  the  system  is  given  by  Mr.  James  Mullenbach,  Chairman  of  the 
Trade  Board. ^ 

Responsibility  for  making  piece-rates  is  lodged  primarily  in 
the  Trade  Board.  For  expediency  tlie  responsibility,  however,  has 
been  turned  over  by  the  Trade  Board  to  a  Committee,  known  as 
the  Rate  Committee,  and  composed  of  three  members,  one  repre- 
senting the  company,  one  representing  the  people,  and  the  chairman 

'  As  an  illustration  of  committee  function   in  interpretation  of  wage  awards  the  followine 
'.:Z,L'to"Vrl   'XY-'ZZl^'   '"'   '''"   ^=^°'    ■'<>"■'    '"   '^^   "-   °f   .he    BhJTpo-^ 

1916!  ro'   "'"l^"""^"""   *   ^^'"^   ^''^'  Agreement,    Chicago    (published   by   the   Company), 

73 


of  the  Trade  Board.  As  a  matter  of  practice,  the  work  of  rate 
making  is  carried  on  ahnost  exchisively  by  the  two  members  rep- 
resenting the  company  and  the  people.  While  some  cases  are 
brought  before  the  full  committee,  these  cases  are  exceptional 
when  compared  to  the  number  settled  by  the  two  members. 

The  agreement  provides  that  in  fixing  rates  the  Board  is 
restricted  to  the  following  rules :  Changed  prices  must  correspond 
to  the  changed  work  and  new  prices  must  be  based  on  old  prices 
when  possible. 

Whenever  a  question  of  piece-rate  arises,  it  is  taken  up  in  the 
first  instance  by  the  two  members  of  the  committee  and  an  attempt 
is  made  to  reach  an  agreement.  If  an  agreement  is  reached,  a 
specification  of  the  work  to  be  performed  and  the  rate  to  be  paid 
is  prepared  and  signed  by  both  representatives  without  any  further 
action.  If,  however,  the  two  parties  are  unable  to  reach  an 
agreement,  the  case  is  taken  up  with  the  full  committee  and  an 
agreement  reached,  or  a  decision  made  fixing  the  rate  and  speci- 
fication. If  this  decision  is  unsatisfactory  to  either  party,  the 
decision  may  be  appealed  to  the  Board  of  Arbitration. 

New  rates  are  always  provisional  and  temporary  and  are 
subject  to  review  after  sufficient  period  of  trial  to  determine  their 
merit.  The  Committee  seeks  to  make  the  temporary  rate  as  nearly 
equitable  as  possible,  both  for  its  effect  on  the  people  and  to  save 
a  repetition  of  the  negotiation. 

After  the  specification  and  rate  have  been  authorized  by  the 
Rate  Committee,  there  can  be  no  alteration  of  the  terms  either 
by  the  company  or  the  people  without  permission  from  the  Rate 
Committee.^ 

The  English  example  is  that  of  the  Phoenix  Dynamo  Company,  of 
Bradford,  a  firm  with  about  4.000  employees.     "One  of  the  greatest 
objections  to  present  piece-work  systems,"  says  this  company,  ^'is  that 
the  employer  works  out  the  price  in  secret,  writes  down  the  time  on  a 
card,  and  this   settles  the  price."     The  men   feel   that  it  is  not  the 
province  of  the  employer  to  fix  rates  in  this  seemingly  arbitrary  manner, 
and  trouble  naturally  arises.     Hence,  the  Phoenix  ^Dynamo  Company 
established  a  plan  by  which  a  piece-rate  committee  is  appointed  ad  hoc 
to  settle  every  case  in  which  a  piece-rate  is  questioned  by  a  work- 
man.    'Tf  we  are  unconvinced  that  the  price  is  unreasonable,  and  the 
man   is   equally  unconvinced   that  it  is   reasonable,  he   can  then  say 
*I  want  this  job  to  go  to  committee.'  "    The  membership  of  these  com- 
mittees consists  of  three  company  representatives,  and  three  work- 
men's representatives  consisting  of  the  men  concerned  and  two  other 
workmen  chosen  by  him.     The  Company's  own  comment  upon  their 

lo^'^ni  ^^  "ateinent  of  the  Hart  Schaffner  &  Marx  Labor  Agreement  see  Appendix   V. 


*r2L    f 


pp. 


74 


plan  is :  "If  any  employer  will  put  himself  in  the  position  of  a  work- 
man, who,  on  being  ofifered  a  price,  thinks  it  unfair,  and  who  has  either 
to  take  it  or  else  put  himself  in  opposition  to  his  foremen  and  others, 
he  will  appreciate  the  value  of  some  such  scheme  as  the  above  to  the 
workman. "1  The  Company's  full  description  of  their  system  is  given 
in  the  Ministry  of  Labor's  Inquiry  into  Works  Committee,  reprinted 
by  the  Emergency  Fleet  Corporation,  and  w^ill  repay  careful  study. 

It  is  significant  also  that  the  works  committee  systems  recently 
inaugurated  by  the  Bethlehem  Steel  Corporation-  and  the  Bethlehem 
Shipbuilding  Corporation  plant  at  Sparrow's  Point,  Md.,  both  include 
a  provision  of  piece-rate  committees. 

(3)  Overtime — The  question  of  overtime  is  inextricably  bound  up 
with  that  of  the  length  of  the  normal  working  day.  The  eight-hour 
movement  appears  to  be  gaining  rapid  headway,  and  to  be  winning  the 
support  of  employers  as  well  as  workmen.  The  adoption  of  the 
"basic"  eight-hour  day,  however,  does  not  mean  that  the  actual  work 
day  is  only  eight  hours  in  length.  It  means  simply  that  any  time 
worked  over  eight  hours  is  paid  for  at  the  rate  of  ''time-and-a-half"  or 
"double  time."  If  the  employer  can  stand  the  cost,  he  can,  on  a  basic 
eight-hour  day  schedule,  w^ork  his  men  nine,  ten  or  twelve  hours.  He 
does  this,  under  present  arrangements  of  management,  whenever  he 
deems  it  necessary.  The  workers  have  little  or  nothing  to  say.  If 
they  get  too  much,  or  in  some  cases,  too  little  overtime  they  can  leave 
the  firm  and  go  elsewhere.  It  is  possible  that  in  the  course  of  the 
evolution  of  works  committee  functions,  the  decision  as  to  the  necessity 
for  working  overtime  will  not  be  entirely  in  the  hands  of  the  employer, 
but  will  be  left  to  a  joint  committee. 

The  opinion  of  the  umpire  and  the  award  of  the  National  War 
Labor  Board  in  the  case  of  the  Molders  vs.  W'heeling  Mold  and 
Foundry  Company  contain  the  following  provision  bearing  on 
overtime  : 

Joint  committee  to  govern  overtime — It  has  been  suggested, 
as  some  protection  against  the  abuse  of  constantly  exceeding  the 
limitation  of  hours  by  the  employer  declaring  in  his  judgment  "an 
emergency"  to  exist,  that  such  extra  days  should  be  limited  to 
three  days  in  the  week.  This  would  only  be  a  very  partial  remedy, 
for  if  the  employee  is  over-worked  three  days  in  the  week  his 

'  Works  Committees,  p.  65. 

.f   .1'^?  ?'^mV^°''c?°V1^  ^''''^^^   ^''-   ^-'   Findings  in  re   Machinists,   Electrical  Workers, 

et  al.   vs.    I.ethlehem   Steel  Company,  unanimously  approved  July  31,    1918:     "Any  necessary 

revision   of  piece   work  rates  shall   be   made  by  an   expert   in  co-operation   with   the  Ordnance 
Department,    the   plant   management,    and   a   committee    from    the    shops  " 

nn     in?n  in99*^^  Q  ^f- ''^^''t-'?  ^'/"u""^  E'^PIT^  Representation.  Iron  Age.  October  24,   1918, 
e&rtinn     tl.       .  ^^*'^°7-    ^^i?^,/^^    Bethlehem    plan    provides:       "After    each    semi-annua 
election    the   representatives  shall  immediately  meet   for  the  purpose  of  electing  a  chairman, 
a    secretary,    a   general    committee,    and    committee   on    rules. 

75 


product  wll  not  only  fall  off  during  these  days,  but  also  during 
the  renmrning  days  of  the  week.  A  better  plan  would  seem  to  be 
a  provision  that  the  employer  shall  appoint  a  standing  committee 
of  two,  and  as  the  burden  of  establishing  an  emergency  is  upon 
those  who  assert  it,  the  eight-hour  limitation  should  not  be 
exceeded  unless  at  least  three  members  of  the  joint  committee  of 
tour  agree  that  there  is  an  emergency  justifying  working  overtime. 
(Opinion  of  the  Umpire.) 

The  question  whether  or  not  an  emergency  exists,  together 
with  the  length  of  time  over  which  such  emergency  may  extend 
and  the  number  of  extra  hours  per  day.  shall  be  determined  by 
agreement  between  the  management  and  the  working  molders  in 
the  shop. 

For  the  purpose  of  effectuating  the  agreement  mentioned  a 
permanent  committee  of  four  persons  is  hereby  created  two  of 
whom  shall  be  designated  by  the  management  of  the  plant  and 
two  by  the  working  molders  in  the  shop,  the  assent  of  at  least 
three  of  whom  shall  be  necessary  for  permission  to  work  more 
than  eight  hours  in  any  day  of  twentv-four  hours.'  (From  the 
Award.)  '  ^ 

(4)    Griez'ances—Anoth^r  group  of   functions  will  relate  to  the 
handling  of  grievances,  such  as  petty  tyranny  on  the  part  of  foremen 
too   rigid   application   of   rules,  alleged  mistakes   in   the  payment  of 
wages,  and  wrongful  dismissal.     The  ^open  door"  policy,  if  by  that 
IS  meant  merely  the  privilege  of  any  individual  employee  personally 
to   take    a    grievance   to   the    manager,    is,    as    already    pointed   out 
inadequate  to  serve  the  requirements  of  a  square  deal.     The  most  gen- 
eral, as  well  as  the  strongest,  motive  to  the  formation  of  works  com- 
mittees seems  to  be  the  desire  to  provide  a  constitutional  and  repre- 
sentative method  for  the  presentation  and  adjustment  of  grievances 
Works  committees  have  in  a  number  of  cases  been  set  up  after  strikes 
which  were  declared  out  of  what  seemed  a  clear  skv,  the  emplovers 
having  no  adequate  means  of  keeping  in  touch  with  the  men.  being  in 
complete  ignorance  that  there  was  any  dissatisfaction. 
^^       It  is   noticeable,  also,   that  in  the  more  elaborate  committee  or 
industrial  conference"  plans  set  up  by  several  large  American  corpora- 
tions, the  handling  of  grievances  occupies  the  chief  position  in  the 
minds  of  the  company  officials.     This  emphasis  may  be  temporary  and 
due  to  the  fact  that  the  works  committee  idea  is  in  its  infancy  in  this 
country.     We  may  be  fairly  well  assured  also  that  if  a  committee  is 
successful  in  handling  grievances  to  the  general  satisfaction    it  will 
gradually  develop  more  positive  functions,  looking  toward  constructive 
as  well  as  conservative,  co-operation. 

»  Docket   No.   37,   September    16,   1918. 

76 


^  U     ' 


Procedure  in  hearing  grievances— Tht  general  procedure  for  the 
hearing  and  adjustment  of  grievances  will  probably  be  somewhat  as 
follows :  A  workman  with  a  complaint  will  take  it  either  direct  to  his 
foreman  or  to  the  secretary  of  his  craft  or  shop  committee,  who  will 
take  it  up  with  the  foreman.  In  event  the  grievance  cannot  be  settled 
in  this  way,  it  will  be  referred  to  the  shop  or  craft  committee,  or  to  a 
grievance  sub-committee  of  the  same.  Thence,  the  line  of  appeal  lies 
through  the  works  committee  to  the  management  and  to  the  trade 
union  officials  and  organizations  concerned.^ 

After  all  it  should  be  remembered  that  the  ultimate  function 
of  committees  is  not  to  settle  grievances,  but  to  prevent  their 
development. 

(5)    Changes  of  processes,  etc.— Othtr  matters  of  special  inter- 
est to  workers  which  should  be  considered  by  the  industrial  (as  dis- 
tinct from  the  welfare)   committee,  include  proposed  changes  in  the 
length  of  the  standard  working  day,  arrangement  of  shifts  and  the 
introduction  of  changes  in  processes.     When  such  changes  are  deemed 
necessary  by  the  production  manager,  the  whole  situation  should  be 
placed  before  a  workers'  committee,  in  order  that  the  necessity  may 
be  understood  and  full  discussion  should  be  allowed,  in  order  that  the 
change  may  be  brought  about  with  the  least  hardship  to  individuals  ^ 
It  is  worth  noting  here  that  this  will  involve  on  the  part  of  employers  a 
much  keener  sense  of  responsibility  than  they  have  hitherto  shown  for 
keeping  their  men  employed,  and  doubtless  some  restriction  upon  the 
hiring  and   firing  privilege.     It  would  also  tend  to  make   workmen 
less    restnful    of    technical    progress,    which    causes   them    temporary 
inconvenience.' 

(6)  War  and  reconstruction  problems— Another  important  func- 
tion of  the  works  committee  should  be  to  watch  the  application  of 
special  conditions  occasioned  by  the  war,  for  instance,  after-the-war 
arrangements,  demobilization  of  war  industries,  and  the  introduction 
of  returned  soldiers  into  the  industrial  establishments  of  the  nation. 
The  question  of  training  and  dilution  has  been  a  delicate  one  in 
England.  In  this  country  the  conference  between  the  shipbuilders  and 
the  representatives  of  shipbuilding  labor  from  the  Pacific  Coast,  held 

'For   England,   see   Works    Committees,   pp.    23,    24 

of   the   Shipbuildfng^aLr   Adjistmen?'Bo?rd     '""   '^""'^   "''"   ^^   "^^^^   *°   ^^^   provisions 
'  See    below,    on    production    committees,    pp.    86-88 

to  be  reabsorbed      Tf  tilic  L  T  proceed  at  such  a  rate  as  will  allow  the  surplus  workers 

77 


in  Philadelphia,  August  5  to  10,  1918,  brought  out  the  fact  that  the 
representatives  of  labor  were  deeply  troubled  by  the  effect  which 
dilution  and  the  intensive  training  of  unskilled  men  to  take  the  place 
of  skilled  workers  might  have  upon  the  fate  of  union  standards  after 
the  war.  Whether  dilution  in  this  country  has  assumed  large  enough 
proportions  to  have  the  serious  results  in  the  permanent  change  of 
production  methods  which  it  doubtless  will  have  abroad  is  a  question. 
In  any  case  a  conmiittee  would  probably  aid  in  meeting  <:he  new 
situation. 

We  come  now  to  the  group  of  questions  upon  which  committee 
consideration  would  prove  advantageous  to  the  management  as  well 
as  in  the  long  run  to  the  employees. 

(7)  Absenteeism — We  may  place  first  in  importance  questions  of 
absenteeism,  labor  turnover,  methods  of  training,  and  suggestions  on 
organization  and  methods.  We  know  that  absenteeism^  in  American 
manufacturing  establishments  at  the  present  time  is  one  of  the  impor- 
tant causes  of  delayed  output.  When  absenteeism  in  shipyards  runs 
from  ten  to  twenty-five  per  cent  of  the  number  of  men  who  should  be 
on  the  job  daily,  a  condition  exists  which  calls  not  only  for  careful 
statistical  record  and  study,  but  also  for  energetic  remedial  measures. 
Absenteeism  is  a  matter  dependent  largely  upon  the  psychology  of  the 
worker.  That  being  the  case,  it  should  be  dealt  with,  so  far  as  pos- 
sible, by  the  workers  themselves.  When  a  proper  sense  of  community 
of  interest  is  developed,  it  would  seem  that  the  handling  of  absenteeism 
and  tardiness  could  be  facilitated  by  the  organization  of  a  special  com- 
mittee or  sub-committee  on  the  subject.  Present  methods  of  dealing 
with  tlie  problem  in  this  country — so  far  as  it  is  dealt  with  at  all — rest 
mainly  on  some  sort  of  bonus  for  good  attendance,  or  on  a  follow-up 
system  by  which  absentees,  or  a  certain  percentage  of  them,  are  visited 
in  their  homes.  So  far  as  information  is  at  hand,  the  committee  plan 
has  not  been  tried  in  the  United  States. 

In  England,  committees,  whose  sole  function,  or  one  of  whose 
main  functions,  is  the  improvement  of  attendance,  have  been  insti- 
tuted in  the  mining  industry,  at  the  iron  works  in  Cleveland  and 
Durham,  and  in  a  number  of  engineering  and  munition  factories. 
Such  committees  are  usually,  though  not  necessarily,  joint  cominttees. 
In  certain  cases,  also,  they  have  judicial  powers,  and  thus  form  an 
exception  to  the  general  rule  that  works  committees  have  only  con- 
sultative functions.  The  pit-head  committees  have  power  to  fine 
absentees.     In  certain  engineering  plants  the  question  of  prosecuting 

*  What    in    America   is   called   absenteeism,    the    English    reports    call    poor    "time-keeping," 
inclu'ling    tardiness    in    the    latter    term. 

78 


absentees  before  the  Munitions  Tribunal  is  decided  by  joint  works 
committees. 

In  one  place  a  works  tribunal  has  been  set  up  in  lieu  of  the  Local 
Munitions  Tribunal.  The  men  elect  a  jury  of  twelve  and  a  chairman. 
This  tribunal  has  been  successful  in  bringing  about  a  great  improve- 
ment in  discipline  and  attendance.  It  is  not  a  joint  committee,  being 
composed  wholly  of  workmen.  The  firm  has  no  status  in  it,  merely 
appearing  by  its  representative  as  it  would  in  the  Local  Munitions 
Tribunal.  Procedure  is  quite  formal,  and  the  firms'  representative  is 
expected  to  address  the  chairman  as  "Sir."  ^ 

The  rules  governing  the  joint  committees  on  absenteeism  in  the 
Northumberland  coal  mines  and  in  the  Cleveland  and  Durham  iron 
works  are  given  in  the  "Report  of  an  Inquiry  into  Works  Committees.'* 
(See  reprint  by  the  Emergency  Fleet  Corporation.) 

Committees  on  lines  similar  to  those  in  Northumberland  have  been 
set  up  in  other  mining  districts.  One  of  the  rules  of  the  Northumber- 
land agreement  provides  means  for  disciplining  officials  who  may  be 
''responsible  for  the  workmen  losing  work  or  failing  to  do  their  best  to 
get  work  for  them."  In  other  localities  provision  is  made  for  wider 
powers,  including  facilities  for  output  and  suggestion  of  improvements. 
The  colliery  committees  seem  on  the  whole  to  have  been  success- 
ful, although  open  to  criticism  and  improvement  in  a  number  of 
particulars.  The  committees  in  the  iron  works  have  been  more  decid- 
edly satisfactory. 

There  is  a  general  feeling  on  the  part  of  work  people  that  if  a 

joint  committee  is  to  have  power  to  discuss  poor  attendance  and  other 

shortcomings  of  employees  it  should  have  the  same  power  to  bring  to 

attention  the   faults   of   the   management.     The   following  quotations 

from  the  opinion  of  an  intelligent  miner  in  the  Midlands  reflect  this 

demand  and  indicate  possible   improvements  in  the  committee  plan: 

The  Joint  Committee'   found  out  that  output  was  not  only 

afifected   by   absenteeism,   but   by    faulty   management,    and   they 

began   to    frame   rules   which   would   embrace   the    faults   of   the 

management,  as  well  as  the  workers'  negligence  in  absenteeism, 

and  would  call  the  committees,  instead  of  absentee  committees! 

output  committees,  which  gives  wider  facilities  and  administration 

in  working. 

The  meeting  of  representatives  of  employers  and  employed 
soon  became  lively,  and  it  showed  the  intense  interest  that  was 
taken  in  the  Government  suggestions,  and  the  men  soon  pointed 
out  to  the  coal  owners  that  there  were  other  causes  which  caused 

to  frl^ff"'*'°"^^'^I'^","^'^  '^■^'■^  provided  for  by  the  Munitions  of  War  Act  (Tulv  2  191  "^^ 
hv  thl  £^""»'  ^^^"'i^.  'n  .that  act  The  tribunal  consisted  of  an  impartial  chairrnan  chosen 
n5;n!L%sTTt"rd    pL^r-rTe^y^fi^es^^^^^^^"   representing  employers^nd   workS^in^'e^ual 

'Works  Committees,   pp.   31,   32.     See  also  Appendix   VI. 

■  Sectional  joint  committees  of  the  miners. 

79 


a  reduced  output  of  coal  besides  absenteeism— the  faults  of  the 
management  in  allowing  tlie  miners  to  wait  for  timber,  no  facilities 
in  taking  men  to  their  work  and  bringing  them  back,  the  waiting 
for  tubs  through  scarcity  and  uneven  distribution  of  the  same. 
If  they  were  going  to  work  this  scheme  and  draw  up  rules,  they 
must  bring  the  management  in  as  well  as  the  men. 

The  coal  owners,  after  consultation,  decided  to  accede  to  the 
request  of  the  men  and  asked  them  to  withdraw  from  this  meet- 
ing, take  it  back  to  their  delegate  board  and  appoint  a  small  com- 
mittee to  draw  up  rules  which  would  give  them  a  voice  in  the 
management  of  the  collieries  concerned 

I  will  be  most  frank  in  what  I  have  to  say  in  this  impor- 
tant question.  The  employing  side  want  no  change,  as  it  only 
applies  to  absenteeism  as  far  as  they  are  concerned.  The  rules 
give  the  men  a  voice  in  the  management,  but  I  am  sorry  to  say 
there  is  no  committee  strong  enough  to  administer  the  rules  as  it 
relates  to  management;  they  go  so  far,  but  stop  as  they  see  an 
invisible  pressure  being  brought  upon  them  which  is  going  to  affect 
the  security  of  their  living,  a  kind  of  victimization  which  you 
cannot  prove.  Your  contracting  place  is  finished  and  you  want 
another  place,  but  the  management  sends  you  'odding' — you  are 
middle-aged  and  you  cannot  keep  pace  with  the  younger  element, 
and  you  look  after  a  fresh  place,  but  everywhere  is  full  up,  and 
when  you  come  out  of  the  office  you  can  see  other  men  set  on. 
This  is  what  is  going  on  all  round  the  district,  and  you  want  to 
strengthen  these  men  by  having  the  rules  enacted  by  Act  of  Parlia- 
ment to  make  them  binding,  and  if  cases  like  this  happen,  there 
wants  to  be  a  Tribunal  appointed  by  Government,  representative 
of  all  classes,  so  that  a  man  shall  have  a  fair  hearing  and  equality 
of  justice;  this  will  give  him  a  security  and  it  will  reduce  this 
insecurity    of    work 

The  attitude  of  the  management  to  committees  is  fairly  good, 
just  according  to  what  the  business  is.  If  it  applies  to  men  they 
are  good,  but  when  it  applies  to  the  management  the  feeling 
changes  a  little,  hut  on  the  whole,  it  is  good.  I  don't  know  of  anv 
decisions  they  have  not  carried  out,  but  it  takes  them  a  long  time 
to  do  it ;  when  they  promise,  your  tenacity  lias  to  be  great. 

As  far  as  colliery  workers  are  concerned,  separate  committees 
are  not  needed,  as  they  would  deal  with  all  questions  that  could 
arise ;  what  would  be  essential  would  be  to  see  that  all  grades  are 
rej)resented  on  the  committee.^ 

Even  if  a  special  committee  is  not  created,  the  regular  works  com- 
mittee, or  the  shop  committees,  may  do  much  to  decrease  absence  and 

'  Works   Committees,   pp.    118-122. 

80 


f   '^ 


t| 


-t 


-It       ■% 


tardiness.     An  English  motor  car  and  aeroplane  establishment  reports 
the  following  results: 

The  Committee  has  been  largely  responsible  for  making  the 
appeal  for  better  timekeeping  effective,  and  this  is  the  more 
remarkable,  because  even  before  the  appeal  was  made  the  time- 
keeping record  was  considered  very  good.  As  an  illustration,  the 
following  figures  were  given:  For  the  week  ending  10-3-17  the 
total  number  of  hours  lost  by  3,300  employees  was  8,050;  the 
corresponding  numbers  for  3,500  employees  in  the  week  ending 
22-9-17  was  5,700;  that  is  a  reduction  from  2.4  to  1.6  per  head. 
The  other  questions  discussed  with  the  officials  of  the  committee 
and  the  representatives  on  it  of  particular  departments  have 
included  dilution,  which  was  carried  through  without  trouble,  and 
grievances  in  regard  to  premium  bonus  times,  including  the  fixing 
of  new  times  when  methods  of  production  are  altered.  Usually 
the  arrangement  of  times  is  discussed  when  the  question  afifects  a 
number  of  men.  A  toolroom  bonus,  payment  of  time  and  an 
eighth,  was  arranged  between  the  committee's  representatives  and 
the  works  manager.  This  bonus,  which  was  conditional  on  good 
timekeeping  and  increased  activity,  has  since  been  given  up  in 
favor  of  individual  premium  bonus.^ 

(8)  Labor  turnover — So  far  as  noted,  there  are  no  committees 
which  directly  consider  labor  turnover.  The  committee  system,  if  at 
all  successful,  will  tend  to  reduce  turnover  by  elevating  the  esprit 
de  corps  and  stabilizing  the  working  force.  It  may  be  suggested,  also, 
that  the  employment  manager  who  has  developed  accurate  methods 
of  recording  labor  turnover  could  secure  the  interest  of  the  works  com- 
mittee and  get  its  co-operation  in  the  task  of  reducing  turnover. 

ft 

(9)  Technical  training — On  the  question  of  training.  Mr.  Renold 
makes  the  following  suggestions  with  regard  to  education  in  shop  proc- 
esses and  trade  technique  :■ 

The  knowledge  of  most  workers  is  limited  to  the  process  or 
processes  on  which  they  are  employed,  and  they  would  have  a 
truer  sense  of  industrial  problems  if  they  understood  better  the 
general  technique  of  the  industry  in  which  they  are  concerned  and 
the  relation  of  their  particular  process  to  others  in  the  chain  of 
manufacture  from  raw  material  to  finished  article. 

It  is  possible  that  some  of  this  education  should  be  undertaken 
by  technical  schools,  but  their  work  in  this  respect  can  only  be  of  a 
general  nature,  leaving  still  a  field  for  detailed  teaching  which 
could  only  be  undertaken  in  connection  with  an  individual  firm  or 

*  Works    Committees,    p.    73. 

'  Kirkaldy,   Industry  and   Finance,   1917,  p.    169. 

81 


a  small  group  of  similar  firms.  Such  education  might  well  begin 
with  the  members  of  the  committee  of  workers,  though,  if  found 
feasible,  it  should  not  stop  there,  but  should  be  made  general  for 
the  whole  works.  Any  such  scheme  should  be  discussed  and 
worked  out  in  conjunction  with  a  committee  of  workers,  in  order 
to  obtain  the  best  from  it. 

(10)  Business  education — It  is  evident  that  matters  pertaining 
to  training  and  education  within  the  plant  itself  would  not  be  taken  up 
by  or  with  the  works  committee  until  it  haa  been  firmly  established. 
Mr.  Renolds,  looking  far  ahead,  makes  some  further  suggestions  with 
regard  to  education  in  general  business  questions.  They  are  given 
here  to  indicate  how  far  an  intelligent  and  broad-minded  employer 
thinks  co-operative  management  may  go  in  this  direction.  It  is  not 
likely  that  the  stage  here  suggested  will  soon  be  reached,  except  in  the 
few  cases  where  some  form  of  co-operative  management  is  already  of 
long  standing. 

Employers  continually  complain  that  the  workers  do  not 
understand  the  responsibilities  and  the  risks  which  they,  as 
em})loyers,  have  to  carry,  and  it  would  seem  desirable,  therefore, 
to  take  some  steps  to  enable  theni  to  do  so.  In  some  directions 
this  would  be  quite  feasible.  <-.  g.: 

The  reasons  should  be  explained  and  discussed  for  the  estab- 
lishment of  new  works  departments,  or  the  reorganization  of  exist- 
ing ones,  the  relation  of  the  new  arrangement  to  the  general  manu- 
facturing policy  being  demonstrated. 

Some  kind  of  simplified  works  statistics  might  be  laid  before 
a  committee  of  workers.     For  example : 

Output;  cost  of  new  equipment  installed;  cost  of  tools  used 
in  given  period  ;  cost  of  raw  material  consumed ;  number  em- 
ployed ;  amount  of  bad  work  produced ;  average  wage  or  earnings 
of  various  grades  or  of  various  departments. 

Reports  of  activities  of  other  parts  of  the  business  might  be 
laid  before  them. 

( 1 )  From  the  commercial  side,  showing  the  difiiculties  to  be 
met,  the  general  attitude  of  customers  to  the  firm,  etc. 

(2)  By  the  chief  technical  departments,  design  office,  lab- 
oratory, etc.,  as  to  the  general  technical  developments  or  difficul- 
ties that  were  being  dealt  with.  Much  of  such  work  need  not  be 
kept  secret,  and  would  tend  to  show  the  workers  that  other  factors 
enter  into  the  production  of  economic  wealth  besides  manual  labor. 

Simple  business  reports,  showing  general  trade  prospects, 
might  be  presented.     These  are  perhaps  most  difficult  to  give  in 

82 


any  intelligible  form,  without  publishing  matter  which  every  man- 
agement would  object  to  showing.  Still,  the  attempt  would  be 
well  worth  making,  and  would  show  the  workers  how  narrow  is 
the  margin  between  financial  success  and  failure  on  which  most 
manufacturing  businesses  work.  Such  statistics  might,  perhaps, 
be  expressed  not  in  actual  amounts,  but  as  proportions  of  the 
wages  bill  for  the  same  period.^ 

(11)  Suggestions — One  very  important  function  of  works  or 
shop  committees  is  the  more  eflfective  gathering,  consideration,  and 
utilization  of  suggestions. 

Naturally,  workmen  will  be  quick  to  make  suggestions  for  the 
improvement  of  living  and  working  conditions  in  the  plant,  providing 
there  is  an  organization  which  can  carry  into  effect  suggestions  that 
are  deemed  practicable.  Consideration  to  such  matters  may  be 
handled  in  a  small  plant  by  the  general  committee,  but  in  plants  of 
larger  size  a  special  welfare  committee  is  undoubtedly  desirable. 

It  is  not  to  be  supposed,  however,  that  the  employee's  instinct  of 
self-expression  and  workmanship  is  going  to  be  satisfied  by  the  right 
to  suggest  that  the  lunch-room  screens  be  repaired,  the  boiler  shop  be 
allotted  ten  more  lockers,  or  the  workers  in  machine  shop  No.  3  sub- 
scribe to  the  purchase  of  a  wrist  watch  for  the  popular  superintendent. 
The  purpose  of  co-operative  management,  expressed  in  works  commit- 
tees, goes  beyond  the  immediate  creature  comforts  of  the  workers  to 
the  industry  itself.  In  however  small  a  way  a  suggestion  adopted  may 
lead  to  improved  organization  or  process,  the  man  who  made  it,  and 
saw  it  considered  by  a  committee  and  taken  up  by  the  plant  manage- 
ment, knows  that  he  has  contributed  something  original  and  unforced 
to  the  functioning  of  the  productive  organization  of  which  he  is  a  part. 
In  a  sense,  the  manual  worker  has  the  advantage  of  the  office  man  in 
that  he  can  see,  daily  and  hourly,  the  results  and  the  progress  of  his 
work.  It  is  tangible,  visible,  growing  before  his  eyes  and  beneath  his 
touch,  even  though  it  be  but  so  many  dozen  pieces  clipped  ofif  by  semi- 
automatic machinery.  The  office  man,  on  the  contrary,  has  to  take  the 
results  of  his  labor  largely  on  faith.  Both,  however,  can  have  and  will 
have,  a  larger  and  better  sense  of  their  own  essential  human  quality — 
in  so  far  as  it  is  not  crushed  out  by  deadening  and  unalleviated  routine — 
and  of  their  position  as  integral  units  in  a  productive  organization, 
w^hen  they  find  "the  men  higher  up"  taking  account  of  their  ideas.  Nor 
is  this  true  only  of  employees  who  offer  suggestions  that  are  adopted. 
It  is  something  to  have  a  suggestion  even  considered.-     Much  good  can 

»  Kirkaldy,  Industry  and  Finance,  1917,  p.  171.  Also  in  the  Survey.  Reconstruction 
Series,    No.    1,    October   5,    1918,   p.    5. 

2  "In  this  connection,  as  in  the  quite  different  field  of  grievances,  it  would  appear  to 
be  important  that  suggestions  which  look  to  be  worthless  should,  nevertheless  be  con- 
sidered."— Works    Committees,    p.    35.  ' 

83 


come,  in  industrial  management  as  elsewhere,  from  a  little  tickling  of 
the  harmless  vanity  of  people.     The  manual  toiler  is  doubtless  not  dif- 
ferent from  the  ordinary  run  of  mortals  in  his  desire  for  recognition, 
if    not    distinction.     Moreover,    when    suggestions    are    rejected    too 
swiftly,  it  is  quite  possible  that  some  which  upon  consideration  and 
development  would  prove  to  be  useful  may  be  lost.     Farmers  gather 
m  granges  or  hang  over  boundary  fences  to  discuss  farm  problems,  busi- 
ness men  make  the  luncheon  hour  a  time  of  shop  talk,  professional  men 
hold  their  periodic  scientific  and  technical  meetings.     All  of  these  men 
have  an  intellectual  stake  in  things,  which  the  manual  worker  lacks. 
The  union,  on  the  one  hand,  if  he  be  a  union  member,  is  constantly 
prodding  him  to  guard  the  interests  of  organized  labor;  on  the  other, 
the   manager,   the   superintendent,   and   the  company   magazine   con- 
tinually preach  to  him  the  duty  of  working  for  his  employer's  inter- 
ests.    Nobody  speaks  of  our  interest,  including  in  that  plural  posses- 
sive, the  man  who  figures  finances,  the  machinist  manipulating  calipers 
at  a  lathe,  and  the  laborer  unloading  scrap  iron.     In  general  it  is  the 
function  of  works  committees  to  popularize  the  "our'  in   industry, 
specifically  it  is  the  suggestion  and  production  committees  which  will 
be  largely  influential  to  this  end. 

Suggestion  committees—A  committee  is  a  human  substitute  for  a 
^^^      ^  ^"e  American  employer,  objecting  to  the  committee  idea,  quotes 
the    now    well-known   aphorism    of    the    tired    cabinet    member   who 
described  a  board  as  "long,  narrow,  and  wooden."     A  box  is  both 
wooden  and  hollow,,  which  may  account  for  the  fact  that  suggestion 
receptacles,  stuck  up  about  the  plant,  frequently  fail  to  maintain  the 
interest  of  the  work  people.     In  the  language  of  the  British  Ministry 
of  Labor,  the  suggestion  box  is  a  "soniewhat  mechanical  and  uninspir- 
ing device"   and   in  itself   *"an   inadequate  stimulus."     Mr.   Leslie   S. 
Mitchell,  \  ice-President  of  the  Robert  Mitchell  Company,  Ltd.,  Mont- 
real, points  out,  also,  that  the  average  workman  is  not  accustomed  to 
the  use  of  a  pen,  and  that  many  times  more  suggestions  will  be  oflfered 
orally,  where  there  is  proper  opportunity,  than  will  be  made  in  writing 
under  the  most  favorable  conditions. 

What  the  Report  on  Works  Committees  has  to  say  on  this  matter 
is  so  much  to  the  point  that  it  should  be  quoted  at  length : 

Where  the  management  gains  the  confidence  of  the  work- 
people, and  has  devised  methods  of  considering  suggestions  which 
appeal  to  the  workpeople,  there  is  a  nuich  more  powerful  response 
than  in  works  where,  though  there  may  be  a  suggestion  box,  these 
conditions  are  absent.  Many  employers  and  workpeople  agree 
that  a  works  committee  may  not  only  produce  an  atmosphere 
necessary  to  the  stimulation  of  suggestions,  but  may  also  help  to 

84 


•^•< 


arrange  for  the  proper  investigation  of  proposals  made  by  the 
workpeople.  The  fundamental  matter  is  that  everyone  should  be 
encouraged  to  think  about  the  progress  and  the  organization  of  the 
works.  It  should  be  noted  that  the  workpeople  very  commonly 
complain  of  the  staff's  attitude  on  such  matters;  any  suggestion, 
they  say,  is  apt  to  be  brushed  aside  with  the  remark  that  they  are 
not  paid  to  think,  but  to  work.  The  obstruction  in  such  cases 
may  be  a  foreman  or  manager,  and  even  though  the  higher  man- 
agement may  be  sympathetic,  it  may  never  hear  of  a  suggestion. 
His  mates  also  are  sometimes  not  very  encouraging  to  a  workman 
with  ideas.  For  lack,  therefore,  of  encouragement,  or  because  of 
actual  discouragement  ideas  of  value  are  held  back  and  the 
capacity  for  ideas  destroyed.^ 

No  attempt  should  be  made  here  to  lay  down  general  rules  with 
regard  to  procedure  in  handling  suggestions  further  than  to  say  that 
matters  affecting  the  whole  plant  should  go  to  a  suggestion  commit- 
tee or  sub-committee  of  the  general  works  committee,  while  matters 
aflfecting  a  particular  shop  should  go  to  the  committee  of  that  shop. 

Suggestion  committees  seem  to  be  rare  in  American  establish- 
ments, and  those  concerns  which  have  reported  shop  or  works  commit- 
tees do  not  say  much  about  suggestions. 

The  Mobile  Shipbuilding  Company,  Mobile,  Alabama,  has  recently 
(October,  1918))  established  a  suggestion  committee  of  four  members 
with  the  employment  manager  as  chairman.^  This  is  in  a  sense  a 
joint  committee,  the  development  of  which  may  be  watched  with  inter- 
est since  it  apparently  introduces  a  new  method  of  valuation  of  inven- 
tions and  suggestion  by  employees.  Usually  the  employee  who  has 
anything  to  offer  has  to  throw  himself  on  the  honor  of  the  company 
for  whatever  payment  he  may  get  for  his  invention.  There  is  no 
doubt  that  employers  have  secured  suggestions  worth  many  thousands 
of  dollars  for  nothing. 

A  Scottish  shipbuilding  firm  has  had  an  "awards  scheme"  in  opera- 
tion since  1880,  which  involves  a  committee  consisting  of  an  outside 
and  independent  person  as  president,  the  manager  of  the  yard,  and  the 
manager  or  chief  draughtsman  of  the  engine  works.  No  workman  is  a 
member  of  the  committee,  but  it  appears  to  give  satisfaction. 

*  Works  Committees,   p.   35. 

'  The    following    notice    appeared    in    the    Moshico    Log,    the    plant    magazine,    October 
10,    19io : 

"Boys,  the  company  wants  to  pay  you  for  suggestions  of  merit.  They  invite  you 
to  criticize  the  yard.  They  want  you  to  point  out  where  improvements  can  be  made 
in    methods,    machinery,    safety    devices,    etc. 

"The  following  committee  has  been  selected  to  pass  on  all  suggestions  and  appraise 
their  value.  .  .  .  The  head  of  the  department  aflFected  by  any  suggestion 
ottered  will  assist  in  placing  a  figure  on  its  value Make  your  sug- 
gestions in  writing,  sign  your  name  and  number,  and  drop  them  in  the  suggestion 
box.  If  your  suggestion  is  worlh  $1.00  you  will  get  it;  if  in  the  judgment  of  the 
committee  it  is  worth    $1000,  that   aniount  will   be  just  as  cheerfully  paid,     .     .     ," 

85 


The  rules  are  elaborate,  and  designed  among  other  things,  to 

do  justice  as  between  different  claimants In  certain 

cases  where  patents  have  been  secured,  the  amounts  received  by 
individuals  have  run  into  hundreds  of  pounds.  In  the  case  of 
patents,  the  inventors  usually  ask  that  one  of  the  firm  should  be 
joined  with  them,  and  share  partly  in  the  gains.  The  reply  of  one 
inventor,  when  he  was  asked  why  this  was  so,  is  compounded  of 
Scotch  caution  and  good  feeling  and  trust.  It  w^as:  "Naebody 
kens  my  name,  but  a'body  kens  yours. "^ 

(12)  Production  committees — Allied  in  function  to  suggestion 
committees,  but  with  more  formal  organization  and  more  definite  pur- 
pose, are  production  committees,  or,  as  some  prefer  to  call  them,  **incen- 
tive  and  output"  committees.  The  shortcoming  of  a  suggestion  com- 
mittee, however  active  it  may  be,  is  that  it  does  not  have — unless  it 
becomes  a  production  committee — a  definite  program  and  line  of  attack. 
The  functions  of  a  production  committee  are  defined  by  an  American 
expert  as  follows : 

(a)  To  study  in  detail  1:he  operations  performed  in  the  differ- 
ent crafts  and  callings  of  the  industry  and  to  determine  if  better 
methods  can  be  found  in  performing  operations  that  will  increase 
production  and  maintain  quality,  eliminate  operations,  and  make 
the  work  more  interesting  to  the  worker. 

(b)  To  study  in  detail  the  method  of  handling  materials  to 
and  from  operators  with  a  view  to  working  out  improvements. 

(c)  To  study  the  methods  of  providing  workmen  with  tools 
and  supplies. 

This  definition  is  from  the  point  of  view  of  a  scientific  manage- 
ment which  recognizes  the  value  of  human  touch  and  the  workman's 
co-operation.  It  is  too  narrow,  however.  The  production  committee 
should  have  wide  freedom  to  consider  any  matter  of  technique  and 
plant  organization,  from  the  proper  motions  of  a  workmen  in  a  given 
task  to  the  wholesale  transformation  of  the  equipment  and  methods  of 
a  department. 

The  pit-head  committees  in  English  coal  fields  are  in  part  pro- 
duction committees,  but  hardly  in  the  sense  just  indicated.  Scattered 
through  reports  and  letters  from  English  and  American  firms  there  are 
to  be  found  suggestions  which  indicate  that  the  production  committee 
idea  is  beginning  to  receive  attention  in  practice.  In  most  cases,  how- 
ever, experiment  has  gone  no  further  than  the  formation  of  foremen's 
committees. 


*, 


'  Works   Committees,   p.   96. 


86 


A  well  organized  production  committee  will  have  the  following 
membership : 

An  expert  production  engineer  who  understands  men  as  well 
as  processes. 

A  representative  of  the  management. 

One  or  more  representatives  of  the  employees. 

The  personnel  of  the  committee  may  be  changed  for  different 
shops,  or  there  may  be  a  separate  committee  for  each  shop.  It  is  an 
open  question  whether  foremen  should  be  represented  on  the  pro- 
duction committee ;  certainly  not  to  the  exclusion  of  representatives  of 
the  men.  It  must  frankly  be  admitted  that  production  committees  are 
experimental.  They  may  work  and  they  may  not.  Under  men  with 
the  human  and  co-operative  point  of  view,  they  would  afford  one  more 
avenue  for  cordial  and  constructive  relations  between  managers  and 
men.  Especially  would  they  fulfill  a  need  the  significance  of  which 
scientific  management  has  never  grasped.  They  w'ould  give  to  the 
workmen  a  voice  not  only  in  the  general  conditions  of  employment, 
but  something  to  say  with  regard  to  the  standardization  of  practice, 
and  the  economics  and  equities  involved,  for  the  employees  as  well  as 
the  employer,  in  change  of  method  or  machinery.  In  other  w-ords,  they 
would  be  a  recognition  that  the  laborer  has  a  specific  stake  in  the  plant, 
not  to  be  pulled  up  or  shifted  without  consulting  him.  Under  present 
conditions,  the  production  expert,  whether  stop-watch  man  or  not,  has 
to  make  his  observations  and  decisions,  often  with  the  direct  hostility 
of  men,  not  seldom  in  the  midst  of  their  attempts  to  deceive  him,  and 
generally  without  their  wholehearted,  honest  co-operation.  It  is  inter- 
esting to  note  in  this  connection  that  candid  experts  agree  that  most 
existing  piece-rate  scales  are  worthless,  from  the  point  of  view  of  fair- 
ness, because  they  are  drawn  up  in  the  absence  of  standardized  prac- 
tice in  technical  processes  and  without  the  real  advice  and  co-operation 
of  the  workers  themselves.  The  scientific  manager  and  production 
engineer  now  pit  their  wits  against  the  men.  Any  organization  which 
will  enable  them  to  pull  together  with  the  men  will  be  a  desirable  step 
in  advance.^  That  the  idea  of  production  committees  has  occurred  to 
representatives  of  both  labor  and  capital,  and  that  it  bears  promise  of 
affording  an  additional  avenue — beyond  that  of  the  general  works 
committee    to    co-operative    management,    good    will,    and   productive 

*  "In  any  case  of  new  rules  or  new  developments,  or  new  workshop  policy,  there  is 
always  the  greatest  difficulty  in  getting  the  rank  and  file  to  understand  what  the  management 
IS  'getting  at.'  However  well-meaning  the  change  may  be  as  regards  the  workers,  the  mere 
fact  that  it  is  new  and  not  understood  is  likely  to  lead  to  opposition.  If  the  best  use  is 
made  of  committees  of  workers,  such  changes,  new  developments,  etc.,  would  have  been 
discussed  and  explained  to  them,  and  it  is  not  too  much  to  expect  that  the  members  of  such 
committees    would    eventually    spread    a    more    correct    and    sympathetic    interpretation    of    the 

management's  intentions  among  their  fellow-workers  than  they  could  get  in  any  other  way." 

Ktrkaldy,   Industry   and   Finance,   pp.    168,    169. 

87 


efficiency,  is  suggested  by  the  following  extracts.  The  first  is  from  a 
shipyard  worker  and  bears  both  on  production  committees  and  sug- 
gestion committees : 

The  suggestion  that  I  would  like  to  make  is  that  a  representa- 
tive be  appointed  for  each  large  plant  whose  duty  it  should  be  to 
gather  suggestions  from  each  and  every  skilled  worker  as  to  short 
cuts  and  improvements  in  method  and  design.  Why  standardize 
old  fogey  notions  and  methods ;  because  *'it''  was  always  done  in 
the  past  is  no  good  reason  why  we  should  continue  to  do  "it." 

Feeble  efforts  have  been  made  to  get  suggestions  from  the 
workers,  but  they  have  been  too  feeble  and  were  along  lines  that 
tended  to  create  distrust ;  for  when  they  were  put  to  use  someone 
was  deprived  of  employment  or  no  real  credit  was  given. 

My  way  of  thinking  is  that  the  person  appointed  must  work 
right  along  with  us,  a  councilor,  an  adviser,  one  who  is  thoroughly 
sympathetic  with  our  efforts  for  real  democracy.  It  is  my  honest 
belief  that  with  such  a  person  on  the  job  jurisdictional  squabbles 
and  trade  prejudices  would  largely  disappear. 

The  second  is  from  a  circular  letter  sent  out  by  Committee  on 
Industrial  Relations,  Chamber  of  Commerce  of  the  United  States, 
August  24,  1918: 

There  is  enough  experience  available  to  prove  that  the  average 
production  manager  is  not  qualified  by  reason  of  his  responsibili- 
ties and  training  for  labor  management  under  present,  and,  particu- 
larly, under  future  labor  conditions  as  they  are  foreseen  by  the 
keenest  visioned  men.  The  ambitious  schemes  of  the  "live-wire" 
sales  manager,  splendid  in  themselves,  must  be  subjected  to  the 
"wet-blanket"  scrutiny  of  the  credit  man  or  the  finance  commit- 
tee; just  so,  the  production  manager  cannot  safely  be  permitted 
to  speed  up  his  processes  and  cut  his  costs  regardless  of  the  effect 
of  his  activities  upon  the  employees  whose  interests  are  concerned, 
but  should  submit  his  plans  for  criticism  and  revision  to  a  labor 
manager,  co-ordinate  with  him  in  authority. 

The  essential  point,  however,  is  that  there  should  be  people 
thinking  about  industry  from  the  standpoint  of  the  interests  of  the 
workers — people  in  the  management  of  individual  concerns,  in 
industrial  associations,  in  Chambers  of  Commerce,  and  in  Wash- 
ington. Such  thinking  will  correct  many  evils  in  industrial  rela- 
tions at  the  source,  will  inform  the  ignorant,  curb  the  unscrupulous 
and  fasten  responsibility  upon  the  careless  or  reckless  employer. 
After  all.  industry  exists  for  the  benefit  of  the  people  and  not  the 
people  for  the  benefit  of  industry. 

88 


^  ■  » 


(13)  Promotion — Mr.  Renold  does  not  deem  it  beyond  the  range 
of  probability  that  the  works  committee  should  have  some  voice  in  the 
selection  and  promotion  of  shop  officials,  especially  leading  men,  sub- 
foremen,  and  foremen.  It  is,  he  says,  "quite  certain  that  it  is  well 
worth  while  making  some  attempt  to  secure  popular  understanding  and 
approval  of  many  of  the  appointments  made."  It  would  at  least  be 
possible  to  explain  why  a  particular  choice  was  made,  and  the  jealousies 
always  involved  in  promotions  could  be  softened  if  the  management 
would  make  to  the  committee  a  statement  indicating  the  qualities 
desired  in  the  position.  'Tt  should  at  least  be  possible,"  says  Mr. 
Renold,  to  discuss  a  vacancy  occurring  in  any  grade  with  all  the  others 
in  that  grade.  For  example,  to  discuss  with  all  shop  foremen  the  pos- 
sible candidates  to  fill  a  vacancy  among  foremen.^  This  is  probably 
better  than  no  discussion  at  all,  and  the  foremen  might  be  expected,  to 
some  extent,  to  reflect  the  feeling  among  their  men.  Here  again  the 
establishing  of  any  such  scheme  might  well  be  discussed  with  the  com- 
mittee of  workers."^ 

Opinions  on  this  question  are  summarized  in  the  Ministry  of 
Labor's  Report  on  Works  Committees  as  follows: 

The  appointment  of  foremen  is  a  question  on  which  there  may 
be  said  to  bci  three  groups  of  opinions.  Many  employers  hold  that 
it  is  purely  a  management  question.  The  opposite  extreme  to  this 
is  the  claim  made  by  a  considerable  section  of  trade  unionists  that 
the  workmen  should  choose  their  own  foremen.  A  position  inter- 
mediate to  these  two  extremes  is  taken  up  by  a  certain  number  of 
employers  and  by  a  section  of  workpeople;  the  appointment  (they 
feel)  should  be  made  by  the  management,  but  it  should  be  sub- 
mitted to  the  works  committee  before  it  becomes  effective.  Even 
this  intermediate  position,  however,  is  not  really  a  common  posi- 
tion ;  there  are  differences  of  opinion  as  to  the  conditions  under 
which  the  appointment  should  come  before  the  works  committee — 
that  is  to  say,  whether  or  no  the  works  committee  should  have 
power  to  veto  the  appointment.  Those  employers  who  are  pre- 
pared to  submit  such  appointments  to  a  works  committee  are  for 
the  most  part  of  the  opinion  that  this  should  only  be  done  in  order 
to  explain  the  reasons  for  their  choice.  This,  they  hold,  w411  tend 
to  remove  obstacles  which  might  otherwise  be  put  in  the  way  of 
the  appointment.  A  considerable  body  of  workpeople,  on  the 
other  hand,  hold  an  intermediate  position  which  comes  nearer  to 
election  of  foremen  by  the  workpeople ;  they  think  that  the  works 
committee  should  have  the  right  to  veto  the  choice  made  by  the 
management.     A  few  employers  consider  that  this — or  even  direct 

*  This   is   one    function   a   foremen's   committee   could   fulfill. 
'  Kirkaldy,    Industry    and    Finance,   pp.    170,    171. 

89 


election — may  be  possible  when  a  works  committee,  through  the 
experience  gained  in  consultations  about  such  appointments,  has 
learned  to  estimate  all  the  qualities  necessary  in  a  foreman.  It 
has  already  been  mentioned  that  works  committees  very  often  dis- 
cuss the  conduct  of  foremen.  The  conclusion  then  reached,  that 
such  discussion  was  a  desirable  function  for  a  committee,  would 
appear  to  involve  as  a  corollary  that  of  consultation  about  appoint- 
ments. This  latter  function  would  tend  to  remove  the  necessity 
for  the  former.^ 

At  least  one  American  firm  is  definitely  working  on  this  question. 
This  is  the  Sunville  Baking  Company,  Pueblo,  Colorado. - 

IV cl fare  comuiittees — X'othing  has  been  said  in  the  foregoing  pages 
about  the  functions  of  welfare  or  "works  amenities"  committees.  It  is 
obvious  that  this  field  offers  wide  and  attractive  opportunities  for  com- 
mittee action,  as  do  special  matters  like  ''safety  first,"  etc.  Where  the 
employer  will  not  tolerate  industrial  committees,  some  form  of  welfare 
committee  is  nevertheless  sometimes  met  with.  A  welfare  committee, 
if  it  functions,  is  better  than  none,  but  it  does  not  in  itself  reach  very 
near  to  the  heart  of  the  problem  of  co-operative  management  and  good 
will  between  employer  and  employee. 

In  general  summary,  it  may  be  said  that  if  the  committee  plan 
develops  and  meets,  even  moderately  well,  the  expectations  of  its  more 
enthusiastic  sponsors,  there  is  no  matter  which  may  not  be  taken  up  in 
a  friendly  and  helpful  spirit  in  joint  council.  Or  if  either  side  cannot 
consent  to  the  discussion  of  a  particular  matter,  the  atmosphere  will 
be  kept  clear  by  a  frank  statement  of  the  reasons  for  not  wishing  to 
take  it  up.  I'he  principles  of  fairness  and  frankness  will  prevail  in 
the  committee  if  they  are  in  the  hearts  of  the  men  and  the 
management." 

4.      OrGAXIZ ATIOX     \Xn    PROCKm-RF 

((I)   Problems   of   Organization 

Constitutional  questions — The  first  prol)lem  is  that  of  the  method 
of  establishing  and  perpetuating  the  committees.  Here  a  number  of 
important  questions  present  themselves.  ( 1  )  What  types  of  committee 
is  it  desirable  to  establish  in  a  given  plant?     (2)   What  shall  be  the 

*  Works  Committees,   pp.   33,   34. 
'  See  xXppendtx  V*,  p.  225. 

'  The  watchword  of  one  .Vmerican  piano  company,  which  has  a  system  of  committees, 
is:      "If  there   is   no   harmony    in   the   shop   there   will   be   none  in    the  piano." 

"Quick  results  are  not  probable,  for  it  must  be  recognized  that  it  will  take  some  time 
before  the  workers  generally  can  be  convinced  that  the  management  does  put  all  its  cards 
on  the  table  in  such  discussions.  A  record  of  straightforwardness  must,  however,  tell  in 
the  long  run,  just  as  even  a  suspicion  of  breach  of  faith  or  'slimness'  would  spoil  all  chances 
of  success.  It  is  important  to  remember  in  all  such  discussions  that  the  management  will 
probably  possess  the  most  highly  trained  minds  and  acutest  debating  power.  It  is  easy  to 
score  points,  but  it  only  leaves  resentment  in  those  scored  off,  and  probably  immediately 
raises    suspicions  of   insinceriy." — -Kirkaldy,    Industry   and    Finance,    p.    169. 

90 


t    . 


X 


-X 


relation  of  the  committees  to  organized  labor  within  the  plant?  Should 
all  employees  vote,  or  should  this  privelege  be  restricted  to  union  men 
and  committees  be  based  upon  the  industrial  organization  of  trade 
union  representatives?  (3)  If  all  employees  vote  how  should  constit- 
uencies be  arranged — by  shops,  by  departments,  by  crafts,  or  by  the 
whole  of  the  employees  voting  as  one  body  ?  In  case  only  union  mem- 
bers vote  in  what  proportion  should  the  various  unions  be  represented  ? 
(4)  How  shall  the  task  of  securing  representation  to  both  skilled  and 
unskilled  employees  be  accomplished  ?  Shall  there  be  one  works  co^n- 
mittee  representing  both  classes,  or  shall  there  be  separate  committees 
— one  for  skilled,  the  other  for  unskilled?  (b)  How  shall  the  com- 
plication  resulting  from  the  employment  of  women  be  handled?  Shall 
women  be  represented  on  the  committees  and  have  a  vote  for  com- 
mittee members  or  shall  they  organize  a  separate  committee  to  look 
out  for  their  own  interests? 

Xo  general  answer  possible — In  the  nature  of  the  case  no  general 
answer  can  be  given  to  these  questions.  Their  proper  solution  will 
depend  largely  uj)on  the  circumstances  of  the  place,  the  industry,  the 
particular  plant,  and  the  type  of  relation  existing  between  employer 
and  employee.  Illustrations  of  almost  every  conceivable  arrangement 
can  be  found  in  English  practice.^  The  movement  just  starting  in  the 
United  States  is  adding  important  variations. 

(1)  Types  of  Committees — In  the  first  place  we  may  distinguish 
l>etween  industrial  committees  and  welfare  committees,  though  the  two 
functions  may  be  continued  in  one  committee.  Secondly,  committees 
are  either  joint,  i.  e.,  composed  of  representatives  of  both  the  men  and 
the  management,  or  separate  committees  of  the  employees  only. 
Thirdly,  they  may  be  composed  entirely  of  union  representatives,  or  of 
non-union  men,  or  a  mixture  of  the  two.  Fourthly,  there  may  be  in 
the  same  plant  craft  committees,  shop  committees,  and  a  general  works 
committee.  Finally  special  committees  for  specific  purposes  may  be 
found — dilution  committees,  suggestion  committees,  piece-rate  com- 
mittees, etc. 

Welfare  eommittees — Welfare  committees  have  been  not  uncom- 
nion,  even  before  the  war,  both  in  England  and  the  United  States. 
A  survey  would  probably  discover  numerous  examples  in  this  country 
where  the  workers  have  organized  social  clubs  or  committees,  with  or 
without  the  encouragement  and  direction  of  a  "welfare  manager." 
The  autocratic  and  paternalistic  spirit  in  which  employers  have  some- 
times sought  to  impose  "industrial  betterment"  schemes  upon  their 
employees  has  not,  however,  tended  to  encourage  the  formation  or  the 


*  See  Works  Committees,  pp.   51-122. 


91 


success  of  independent  welfare  committees  in  this  country.  As  indi- 
cated above,  welfare  committees  have  sometimes  formed  the  nucleus 
for  the  development  of  industrial  works  committees.  Perhaps  the  most 
notable  instance  of  the  kind  in  this  country'  is  afforded  by  the  interest- 
ing history  of  the  highly  successful  Filene  Co-operative  Association 
in  Boston.^  In  any  case,  welfare  committees  are  of  comparatively 
slight  importance  in  the  face  of  the  grave  questions  of  an  economic 
and  industrial  nature  which  management,  autocratic  or  co-operative, 
is  now  called  upon  to  face.  "Industrial  betterment*'  plans  cannot  be 
said  to  have  satisfied  the  anticipations  of  the  employers  who  have 
established  them,  nor  to  have  gained  much  beyond  a  grudging  and  half- 
contemptuous  and  cynical  interest  on  the  part  of  self-respecting 
employees.  Where  employers  can  bring  themselves  to  pay  in  increased 
wages  the  sums  they  would  otherwise  expend  in  ostentatious  "better- 
ment" and  encourage  employees  to  establish  and  manage  their  own  wel- 
fare work  and  organization,  excellent  results  are  likely  to  follow,  and 
such  welfare  organization  may  well  afford  a  natural  approach  to 
co-operative  management,  through  a  general  works  committee,  of  the 
industrial  relations  between  employer  and  employees. 

Industrial  committees — Industrial  committees  will  give  attention 
to  those  more  serious  questions  of  policy  which  are  likely  to  produce 
contention,  opposition,  and  perhaps  industrial  warfare  between  employ- 
ers and  workmen,  and  to  matters  which  affect  the  efficiency  of  the 
plant,  economy  of  production,  and  progress  in  organization  and 
technique. 

Joint  IS.  separate  committees — Joint  committees  are  as  yet  com- 
paratively rare.  In  England,  there  are  some  committees  of  this  nature, 
composed  of  two  or  three  representatives  of  the  management  and  ten 
or  twelve  of  the  workmen.  They  hold  regular  meetings,  usually  at 
longer  intervals  than  one  week.  When  the  works  committee  is  a  joint 
conmiittee.  however,  some  provision  is  generally  made  for  separate 
m.eetings  of  the  workers.  This  should  always  be  done.  Usually,  works 
committees  are  committees  of  employees  only,  with  regular  and  con- 
stitutional facilities  fc*-  consultation  with  the  management,  either  at 
fixed  intervals  or  whenever  occasion  arises.  Joint  committees  may 
ultimately  come  to  be  the  normal  form,  but  a  long  period  of  experience 
with  works  committees  will  probably  precede  any  widespread  establish- 
ment of  joint  committees.  This  statement  does  not  apply,  however,  to 
committees  with  specialized  functions,  the  number  of  which,  in 
England,  is  large. 


^l    • 


See   Appendix    V,   pp   180-191. 


92 


Both  types  have  their  advantages  and  disadvantages.  Probablv 
the  best  plan  is  to  have  both  types  of  committees  at  once.  The  advan- 
tage of  the  joint  committee  is  that  it  affords  opportunity  for  continuous 
contact  between  the  management  and  the  authorized  representatives  of 
the  employees.  Its  disadvantages  lie  in  the  time  required,  if  the  man- 
ager or  his  representatives  have  to  attend  frequent  meetings  in  which, 
often,  matters  which  do  not  need  his  attention  are  discussed  at  length ; 
in  the  need  of  the  men  to  consider  their  problems  by  themselves  (just 
as  the  management  do  theirs)  ;  and  in  the  fact  that  the  men,  in  the 
earlier  stages  of  the  committee  plan  at  least,  may  not  think  or  talk 
freely  in  the  presence  of  the  representatives  of  the  employer.  There 
is  some  possibility,  especially  where  the  relations  between  employees 
and  employers  have  not  been  cordial  and  where  confidence  and  good 
will  are  not  well  established,  that  .the  employees  may  be  suspicious  of  a 
joint  committee  arrangement  because  of  a  fear  that  the  management  is 
taking  this  means  to  spy  on  the  men.  In  any  case  facilities  for  com- 
mittee consultation  with  the  management  should  be  freely  and  con- 
stitutionally provided  for,  and  the  right  of  appeal  to  the  highest  officers 
and  even  to  the  directors  granted. 

Representatives  of  the  firm  should  be  of  high  rank — Whether  the 
works  committee  is  formally  "joint"  or  whether  it  or  a  sub-committee 
merely  meets  the  management  on  occasion,  ''it  is  important  that  the 
representatives  of  the  firms  who  meet  the  committee,  or  (if  it  is  a 
joint  body)  sit  on  the  committee,  should  belong  to  the  highest  rank, 
and  should  include  the  general  works  manager  (or,  if  there  is  one,  the 
labor  superintendent)  and  one  or  more  of  the  directors."  ^  All  the 
disadvantages  of  the  joint  committee  are  probably  overweighed  by  the 
essential  fact  that  one  of  the  greatest  services  the  works  committee 
can  perform  is  to  bring  men  and  management  into  close  contact,  and 
give  the  men  an  opportunity  of  discussion  with  the  authorities  with 
whom,  in  its  absence,  they  seldom  get  into  close  touch,  and  then  only 
on  points  of  dift'erence.- 

"Nor  is  it,"  says  the  ^Minister  of  Labor,  "only  the  workmen  who 
stand  to  gain  if  the  highest  rank  of  the  management  is  represented. 
Members  of  the  firm  who  are  primarily  occupied  with  finance  or 
technique  will  be  brought  into  contact  with  those  questions  of  labor 
which  are  the  fundamental  problems  of  industry,  and  in  discussing 

»  Works  Committees,  p.  25.  The  Whitley  Committee  also  insists  that  men  of  high  rank 
in  management  should  attend  the  joint  committee  meetings.  "We  regard  the  successful 
development  and  utilization  of  Works  Committees  in  any  business  on  the  basis  recommended 
in  this  Report  as  of  equal  importance  with  its  commercial  and  scientific  efficiency  and 
we  think  that  in  every  case  one  of  the  partners  or  directors,  or  some  other  responsible 
representative    of    the    management,    would    be    well    advised    to    devote    a    substantial    part    of 

his  time   and   thought  to   the  good  working  and   development  of   such   a  committee  " SuddIc- 

nientary   Report,    Section   8.  * 

»  Ibid,   p.   26. 

93 


these  questions  with  the  representatives  of  tlie  workmen  they  are  Hkely 
to  gain  a  deeper  insight  into  the  hest  methods  of  conducting  the 
industry."  ^ 

''The  open  f/(n)r"— hjuphasis  is  to  he  placed  on  the  necessity  of 
an  0{)en  door  pohcy  on  the  part  of  the  management.  But  the  door 
must  stand  open  not  only  to  individuals  who  liave  grievances  or  sug- 
gestions hut,  to  authorized  committees  or  deputations.  Many  an 
employer  prides  himself  on  maintaining  an  open  door  policy,  who  will 
grow  red  in  the  face  at  the  thought  of  "recognizing  the  union"  and  who 
utterly  refuses  to  admit  to  his  sanctum  any  representatives  of  his  own 
employees,  whether  union  or  non-union.  He  expects  any  man  who  has 
a  grievance  to  come  in  person  and  present  it,  and  he  does  not  clearly 
comprehend  the  fact  that  a  real  open  door  policy  would  involve  more 
than  the  presentation  and  adjudication  of  "kicks."  Much  could  be  said 
with  regard  to  psycholog)-  and  the  open  door.  It  will  suffice  to  point 
out,  however,  that  an  individual  workman,  in  greasy  overalls,  and  w^ith 
the  eye  of  his  foreman  upon  him.  is  not  likely  to  force  his  way  past 
doorkeepers  and  secretaries  into  the  private  office  of  the  manager, 
and  confront  him  across  his  polished  mahogany  desk  top  unless  he  is 
moved  by  a  burning  "grouch."  If,  however,  the  manager  meets  a 
representative  committee  as  a  matter  of  the  regular  course  of  events, 
not  only  will  individual  grievances  get  a  hearing,  but  the  way  will  be 
paved  for  mutually  helpful  relations.  The  advantages  of  the  committee 
system  do  not  lie  all  on  one  side,  by  any  means. 

(2)  Relation  to  organized  labor  in  the  plant — This,  together  with 
the  l)roader  question  with  regard  to  the  relation  of  the  committee  sys- 
tem to  organized  labor  at  large,  is  one  of  greatest  significance  to  the 
success  or  failure  of  the  movement  for  co-operative  management  in 
this  coimtry.  In  England,  as  we  have  seen,  the  movement  has 
developed  quite  naturally  upon  the  basis  of  the  craft  or  shop  stew^ards, 
so  that  the  backbone  of  the  committee  system  there  may  be  said  to  be 
an  already  existent  trade  organization.  This  is  doubtless  one  considera- 
tion which  leads  the  Whitley  Committee  to  insist  throughout  that  works 
committees,  wherever  possible,  should  be  based  upon  union  organiza- 
tions. The  Whitley  Committee  does  not  say,  however,  that  member- 
ship upon,  or  vote  for,  works  committees  shall  necessarily  be  limited  to 
union  members. 

Composition  of  committees — In  closed  shops  no  question  will  arise. 
The  committees  will  be  out-and-out  imion  committees.  In  open  shops 
there  are  at  least  three  possibilities.  The  committees  mav  he  composed 
(fl)  of  shop  or  craft  stewards  elected  })y  union  men  only  (in  wdiich  case 

>  W'orks   Committees,   p.    26. 

94 


there  is  no  true  works  committee),  (b)  oi  union  men  elected  by  vote  of 
all  employees,  non-union  as  w^ell  as  union,  (<:)  of  both  union  and  non- 
union members.  In  plants  whose  management  will  tolerate  the  pres- 
ence of  no  union  man,  either  no  question  will  arise,  or  the  committee 
system  will  be  in  a  fair  way  to  fail  from  the  start  because  of  the 
absence  of  a  proper  sense  of  freedom  and  confidence. 

The  Ministry  of  Labor  hold  that  "wherever  possible,  a  committee 
of  shop  stewards  or  trade  union  representatives  w-ould  appear  to  be  the 
best  solution,"  ^  but  this  conclusion  applies  to  English,  not  to  American 
conditions. 

Safeguarding  interests  of  both  union  and  non-union  men — Even 
in  England,  how^ever,  the  problem  of  securing  harmonious  co-operation 
between  union  and  non-union  elements  is  recognized : 

Since,  however,  the  problem  from  the  point  of  view  of  well 
organized  industries  is  complicated  by  the  existence  of  poorly 
organized  areas,  a  proposal  under  consideration  by  a  firm  in  w^hich 
considerably  less  than  one-half  of  the  employees  are  trade  union- 
ists may  be  noted.  The  proposal  is  that  the  works  committee 
should  be  composed  of  departmental  representatives  who  will 
include  the  shop  stewards,  and  that  from  this  committee  as  a 
whole,  or  from  the  shop  steward  and  the  non-shop  steward  sec- 
tions of  it  separately,  there  should  be  elected  a  small  number  of 
representatives  of  the  workers  to  sit  on  a  joint  committee  (of 
employees,  not  of  employees  and  management).  The  proposal 
was  made  as  a  means  of  combining  (a)  the  recognition  of  the 
shop  stewards,  and  (b)  the  representation  of  all  the  work  people 
on  the  joint  committee,  w^ithout  duplication  of  committees  for 
different  functions.  The  firm,  which  recognizes  the  unions  and 
whose  conditions  are  above  the  district  standards,  intends  that  the 
joint  committee  should  deal  with  a  very  wnde  range  of  subjects, 
only  some  of  which  are  shop  steward  questions. - 

Hiis  suggestion  offers  a  feasible,  though  a  somewhat  cumbersome, 
method  by  which  the  interests  of  union  representatives  and  of  non- 
union employees  may  both  be  guarded  and  at  the  same  time  co-opera- 
tion secured.  It  recognizes  the  unions  but  does  not  give  them  exclu- 
sive power  of  representing  the  interests  of  the  w^orkers. 

A  simpler  plan,  and,  where  the  union  will  agree  to  it  voluntarily, 
a  better  one,  would  seem  to  be  provision  for  committees  elected  by  all 
employees,  and  to  which  any  employee,  union  or  non-union,  is  eligible 
for  membership.  This  is  the  plan  adopted  in  this  country,  in  the  deci- 
sions of  both  the  Shipbuilding  Labor  Adjustment  Board  and  the  War 


*  Works   Committees,   p.    18. 

'  Works   Committees,   pp.    18,   19, 


95 


Labor  Board.  The  unfortunate,  though  in  war  time  necessary,  feature 
of  the  plans  of  these  Jioards.  however,  is  their  compulsory,  or  quasi- 
compulsory,  nature.  They  have  been  imposed,  in  more  than  one 
instance,  upon  concerns  which  have  had  intense  opposition  to  unionism 
and  collective  bargaining,  and  in  times  of  accute  industrial  disturbance 
which  threatened  the  continuity  of  production  of  goods  vital  to  the 
prosecution  of  the  war.  When  it  is  necessary  to  specify  that  the  elec- 
tion shall  take  place  in  some  public  building  outside  the  plant,  and  that 
a  Government  Examiner  shall  preside  and  see  that  there  is  fair  play, 
too  much  success  or  permanency  in  the  committee  should  not  be  looked 
for.  In  these  cases  the  committee  plan  must  be  regarded  as  an  emer- 
gency measure  only.^ 

The  election  by  the  workers  of  their  representative  depart- 
ment committee  to  present  grievances  and  mediate  with  the  com- 
pany shall  be  held  during  the  life  of  this  award,  in  some  con- 
venient public  building  in  the  neighborhood  of  the  plant,  to  be 
selected  by  the  Examiner  of  this  Board  assigned  to  supervise  the 
execution  of  this  award,  or  in  the  case  of  his  absence,  by  some 
impartial  person,  to  be  selected  by  such  Examiner.  Such  Exam- 
iner, or  his  substitute,  shall  preside  over  the  first  and  all  subse- 
quent elections  during  the  life  of  this  award,  and  have  the  power 
to  make  the  proper  regulations  to  secure  absolute  fairness. 

The  decisions  of  the  Macy  Board  do  not  dictate  place  of  election 
but  do  provide  that  election  shall  be  by  secret  ballot. 

Tendency  toward  election  of  union  men — In  plants  where  organ- 
ized labor  is  strongly  represented  the  tendency  is  toward  the  election 
of  representatives  who  are  all  union  men.  This  is  true  in  England* 
and  will  probably  prove  to  be  so  in  this  country  because,  on  the  whole, 
the  union  men  take  the  most  interest  in  those  matters  which  constitute 
the  ftmctions  of  works  committees,  and  also  because,  no  doubt,  they 
will  see  in  works  committees  a  new  method  of  collective  bargaining — 
a  method  which,  they  will  feel,  the  unions  should  control  so  far  as  the 
workers  are  concerned.  If,  however,  in  an  open  shop,  the  apathy  of 
the  non-union  employees,  or  the  half-hearted  interest  of  the  manage- 
ment, allows  the  union  men  to  gain  complete  control,  the  committee  will 

*  The  following  provision  is  contained  in  the  awards  of  the  War  Labor  Board  in  the 
cases  of  Smith  &  Wesson  (Docket  No.  273).  the  General  Electric  Co.,  Pittsfield  Works 
(Docket    No.    19),   and   the    Bethlehem    Steel    Co.,    Bethlehem    W^orks    (Docket    No.    22): 

"The  election  by  the  workers  of  their  representative  department  committees  to  present 
grievances  and  mediate  with  the  company  shall  be  held  during  the  life  of  this  award 
in  some  convenient  public  building  in  the  neighborhood  of  the  plant,  to  be  selected  by 
the  Examiner  of  this  Board  assigned  to  supervise  the  execution  of  this  award,  or  in 
the  case  of  his  absence,  by  some  impartial  person,  to  be  selected  by  such  Examiner. 
Such  Examiner,  or  his  substitute,  shall  preside  over  the  first  and  all  subsequent  elections 
during  the  life  of  this  award,  and  have  the  power  to  make  the  proper  regulations  to 
secure   absolute    fairness.'' 

The  decisions  of  the  Macy  Board  do  not  dictate  place  of  election,  but  do  provide 
that   election   shall    be   bv    secret   ballot. 


I 


^  f- 


I 


»  Works  Committees,  p.    15. 


96 


not  be  representative.  It  will  be  co-operative  and  democratic  only  in 
name,  at  least  so  long  as  the  shop  remains  truly  "open."  The  chief 
problem  would  seem  to  be  to  secure  active  interest  on  the  part  of  non- 
union men  without  at  the  same  time  arousing  the  suspicion  of  union 
men  that  the  management  is  using  the  works  committee  plan  to  under- 
mine union  influence.  This  can  be  done  only  by  an  honest  and  tactful 
management  which  lays  all  its  cards  on  the  table,  lays  aside  old  scores, 
and  refrains  from  any  form  of  secret  diplomacy. 

(3)   Arrangement  of  constituencies — Where  the  committee  mem- 
bers are  elected  directly  or  indirectly  by  all  the  employees,  as  they 
should  be,  the  constituencies  can  be  arranged  in  various  ways,  chief  of 
which  are  (a)  all  the  employees  voting  as  one  constituency,  (b)  voting 
by  shops,  (c)  voting  by  crafts.     The  simplest  arrangement,  more  suit- 
able for  small  plants  is  the  election  of  the  works  committee  by  all  the 
employees  voting  without  regard  to  craft  or  shop.     In  large  plants  it 
is  probably  better  that  each  shop,  department,  or  craft,  should  vote  for 
whatever  number  of  representatives  it  is  entitled  to  have  on  the  works 
committee.     Where  shop  or  craft  committees,  as  well  as  a  general 
works  committee,  are  organized,  the  membership  in  the  general  w  orks 
committee  may  be  based  upon  that  of  the  shop  or  craft  committees. 
Obviously  this  may  be  done  in  a  variety  of  ways.     The  chairmen  of 
the  shop  or  craft  committees  may  constitute,  ex  officio  the  works  com- 
mittee ^  (or  the  employees'  representatives  on  it,  if  it  be  a  joint  com- 
mittee) ;  each  shop  or  craft  committee  may  elect  its  own  representa- 
tives, from  its  own  membership  to  the  works  committee;  or  the  gen- 
eral electorate  of  each  craft  might  elect  members  to  the  works  com- 
mittee, confining  their  choice  to  members  of  shop  or  craft  committees. 
Only  experience  can  show  what  method  is  best  adapted  to  a  given 
establishment.    The  only  general  rule  that  may  be  laid  down  is  that  the 
utmost  democracy — an  unlimited  franchise — should  mark  the  election 
of  shop  and  craft  committees.     It  is  quite  likely  that  the  general  works 
committee  may  best  be  chosen  by  the  shop  or  craft  committees,  though 
it  is  by  no  means  clear  that  the  chairman  of  these  committees  should 
constitute  ex  officio  the  works  committee.    That  depends  upon  how  the 
chairmen  are  chosen.     Moreover  the  tenure  of  office  on  departmental 
committees  should  probably  be  comparatively  short,  while  that  on  the 
works  committee  should  be  long  enough  to  secure  breadth  and  expe- 
rience in  dealing  with  the  larger  problems  of  the  works  as  a  whole. 

In  a  certain  measure,  organized  labor  may  raise  objection  to  the 
election  of  committees  by  departments  rather  than  by  crafts.  This 
objection  will  rest  on  the  ground  that  trade  unions  are  organized  on 
craft  lines,  and  that  shop  or  works  committees  organized  on  a  depart- 
mental basis  w^ill  confuse  matters  by  cutting  at  right  angles  to  craft 

*  This  is  the   Macy   Board  plan.     See  below,  p.    118. 

97 


I 


organization.  Further,  it  may  be  objected  that  departmental  organiza- 
tions is  being  chosen  by  the  big  corporations  with  the  definite  intention 
of  impairing  or  excluding  union  influence.  Be  this  as  it  may,  depart- 
mental organization  is  not  inimical  to  union  power  or  to  union  organi- 
zation in  the  plant,  provided  the  unions  have  a  footing  to  begin  with. 
Some  employers  opposed  to  the  unions  object  even  to  departmental 
committees,  on  the  ground  that  the  union  men  in  a  shop  take  the  initia- 
tive in  the  election  of  the  committee,  with  the  result  that  all  its  members 
are  union  men  although  a  majority  of  the  men  in  the  shop  may  be 
non-union. 

Election  hi  closed  shops— In  closed  plants  or  plants  in  which 
nearly  all  the  employees  are  union  members,  the  election  of  committees 
will  naturally  be  on  the  basis  of  unions,  all  the  members  of  a  union 
electing  a  certain  number  of  representatives.  In  case  of  large  indus- 
trial unions  elections  may  be  by  branches.  In  those  shops  or  trades  in 
which  there  are  shop  or  craft  stewards— and  they  are  much  less  prev- 
alent in  this  country  than  in  England— the  stewards  will  naturally  be 
elected  to  the  works  committee.  It  is  unnecessary  to  go  into  detail  for 
the  closed  shop,  however.  There  the  main  thing  is  for  the  manage- 
ment and  the  men.  already  acquainted  with  methods  of  organization 
and  representation,  to  get  together  for  the  establishment  of  a  joint 
works  committee. 

(4)   Skilled  and  miskilled—ThQ  presence  of  skilled  and  unskilled 
men  in  the  same  plant  occasions  some  problems  of  representation.     In 
England,  especially  in  tlie  large  engineering  establishments,  there  are 
in  several  cases  committees  of  shop  stewards— one  for  skilled  men  and 
the  other  for  semi-skilled  men  laborers.     Generally,  however,  one  com- 
mittee suffices  for  both  sets  of  employees.    It  is  interesting  to  note  that 
the  works  committee  in  a  Midlands  munition  factory  has  recently  been 
reconstituted.    Election  by  the  departments  had  produced  a  committee 
made  up  entirely  of  skilled  trade  unionists.     While  the  committee  was 
not  opposed  by  the  grades  of  labor  not  directly  represented  on  it,  the 
semi-skilled  and  unskilled  did  not  show  much  interest  in  it.    To  remedy 
this,  a  new  method  of  election  was  instituted,  giving  separate  represen- 
tation to  skilled  men,  semi-skilled  and  unskilled  men,  and  to  women. 
This  scheme  was  advocated  and  carried  through  by  the  secretary  of  the 
committee,  who  is  himself  a  union  official.^ 

Denial  of  representation  to  the  unskilled  may  be  a  serious  cause 
of  friction  between  the  different  classes  of  workers,  as  the  presence 
in  some  plants  of  separate  committees  indicates. 

Where  there  is  only  one  committee,  membership  is  likely  to  be 
confined  to  skilled  men.     This  is  usually  not  the  result  of  design  but 


*  Works   Committee,   p.    17. 


V 


1 


98 


of  the  fact  that  the  majority  of  men  in  a  shop  or  department  are 
skilled.  The  objection  has  been  raised  that  skilled  men  will  not  ade- 
quately consider  the  interests  of  the  unskilled.  The  Ministry  of  Labor 
says,  however: 

It  would  nevertheless  appear  that  most  committees  appointed 
on  the  department  basis  do  succeed  in  representing  fairly  the 
interest  of  the  other  constituents,  and  it  is  claimed  that  the  com- 
mittee member  tends  to  look  upon  himself  not  as  a  representative 
of  a  particular  craft  or  section  of  the  department  but  as  a  repre- 
sentative of  the  department  as  a  whole.^ 

In  the  United  States,  it  is  less  certain  whether  skilled  labor  would 
give  due  and  fair  consideration  to  the  interests  of  unskilled  employees. 
The  history  of  organized  labor  in  this  country  does  not  give  assurance 
on  this  point.  The  long  continued  apathy  of  trade  unions  and  the 
American  Federation  of  Labor  toward  the  organization  and  interests 
of  the  unskilled,  together  with  the  slowness  with  which  the  principle 
of  industrial,  as  distinguished  from  trade,  unionism  gained  recognition 
in  the  minds  of  organized  labor  officials — in  short  the  particularism  and 
individualism  of  American  trade  unionists,  may  properly  cause  some 
doubt  whether  men  who  have  sometimes  been  more  concerned  with 
elevating  and  maintaining  standards  of  wages  and  conditions  for  their 
own  trade  than  with  improving  the  lot  of  the  entire  working  population, 
unskilled  as  well  as  skilled,  will  at  once  be  able,  under  any  sort  of  com- 
mittee system,  to  give  much  consideration  to  the  interests  of  Dago  and 
Hunkie  laborers  about  the  plant. 

Foreign-born  laborers— Wq  must  recognize  the  fact  that  the 
American  labor  class  has  been  cut  across  by  semi-caste  lines.  The 
skilled  tradesmen  have  not  only  had  to  carry  on  the  struggle  for 
recognition  and  collective  bargaining;  they  have  not  only  had  to  meet 
the  conditions  resulting  from  the  rapid  introduction  of  highly  special- 
ized machinery,  and  latterly  of  scientific  management,  but  they  have 
also,  as  was  not  the  case  with  skilled  workmen  in  England,  Germany, 
and  France,  had  to  protect  American  standards,  as  best  they  might, 
from  the  terrific  and  degrading  pressure  of  the  immense  influx  of 
unskilled  labor  from  South  and  East  Europe.  When  employers,  often 
m  violation  of  the  contract  labor  laws,  were  importing  these  people  and 
regarding  them  much  as  cattle,  it  is  not  surprising  that  the  skilled  labor 
classes  came  to  look  upon  them  with  disfavor,  and  as  an  unassimilated 
and  perhaps  unassimilable  mass  whom  it  was  impossible  to  take 
into  the  fold  of  organized  labor.  In  certain  industries,  however, 
notably  mining,  conditions  compelled  the  development  of  industrial 
unionism.  In  these,  little  doubt  need  be  entertained  that  a  single  works 
committee  would  adequately  represent  both  skilled  and  unskilled. 

^  Works   Committees,    p.    18. 

99 


Negro  labor — Another  complication  in  this  country,  especially  in 
the  South,  results  from  the  presence  of  negro  labor,  most  of  which  is 
unskilled.  The  attitude  of  trade  unionists,  both  North  and  South. 
toward  the  negro  has  been  the  reverse  of  democratic.  Nowhere  have 
the  unions,  in  practice,  whatever  lip  service  they  may  render  to  the 
principle  of  a  square  deal,  given  the  negro  a  fair  show  to  improve  his 
industrial  status.  Throughout  the  South,  moreover,  the  color  line  runs 
through  the  center  of  every  industrial  establishment.  Here  it  would 
be  mere  foolishness  to  expect  one  committee  to  represent  all.  It  is 
significant  that  the  shop  committees  set  up  in  one  Southern  shipyard 
and  regarded  by  the  management  as  highly  successful,  as  indeed  they 
seem  to  be,  do  not  represent  the  negroes  in  any  way.  Although  negroes 
constitute  about  one-third  of  the  working  force  of  the  yard,  they  have 
neither  vote  nor  representation  on  the  committees. 

It  is  evident,  therefore,  that  there  may  be  conditions  under  which 
it  is  desirable  to  have  separate  committees  for  skilled  and  unskilled, 
and  in  the  South  for  negroes  and  whites,  even  though  such  procedure 
is  confession  of  our  incapacity  at  present  to  develop  fully  the  co-opera- 
tive representation  and  discussion  which  are  part  of  the  foundation  of 
industrial  democracy. 

(  5  )  Representation  of  ivomen  ivorkers—h\  plants  where  anv  con- 
siderable numbers  of  women  are  employed,  this  (juestion  is  likelv  to 
give  trouble.  Partly  because  they  perform  chiefly  unskilled,  or  at  most 
semi-skilled,  tasks,  and  partly  because  the  very  great  majority  of  them, 
hitherto  at  least,  have  engaged  themselves  in  gainful  industrial  pur- 
suits only  until  the  door  of  matrimony  opened  to  them,  women  have  not 
organized  for  collective  bargaining.  Moreover  they  have  not  been 
freely  admitted  to  the  unions  nor  have  the  unions  as  a  rule  made  any 
whole-hearted  attempt  to  establish  collective  bargaining  for  them.  See- 
ing in  the  woman — in  conjunction  with  automatic  machinery — a  cut- 
throat competitor  for  his  job,  the  union  mechanic  has  taken  an  attitude 
of  hostility  to  the  further  entrance  of  women  into  industry.  In  con- 
sequence, the  lack  of  unity  of  feeling  and  interest  between  skilled  and 
unskilled  has  been  mirrored  in  an  indifference  to  the  interests  of 
women  employees.  There  have  been  exceptions  to  this  rule,  of  course, 
but  in  general  male  employees  have  looked  upon  women  operators, 
where  not  segregated  in  "women's"  departments,  with  an  indifference, 
if  not  intolerance,  which  had  the  double  motivation  of  the  male's  tra- 
ditional sense  of  superiority  and  his  fear  (not  unfounded)  that* employ- 
ers would,  if  permitted,  utilize  women  to  break  down  standards  of 
wages  and  working  conditions  built  up  through  long  and  painful 
sacrifice  on  the  part  of  union  labor. 

During  the  war  the  unions  have  patriotically  permitted  the  sus- 
pension of  union  standards  and  rules,  perhai)s  to  a  greater  extent  in 

100 


V 


*• 


I 

i 


England  than  in  this  country,  but  still  to  a  remarkable  degree  in  both. 
They  have  seen  the  old  skilled  trades  broken  up  into  many  processes 
and,  in  England  particularly,  the  wholesale  introduction  of  automatic 
machinery,  together  with  the  removal  of  all  limitations  on  output,  the 
introduction  of  bonus  schemes,  and  the  like.  Dilution  of  labor  has 
been  carried  out  very  largely  through  the  induction  of  women  into 
industries  where  they  had  obtained  no  foothold  prior  to  the  war.  Most 
conspicuous  has  this  revolution  been  in  the  metal  trades.  The  British 
Government  in  its  covenant  with  the  trade  unions  promised,  in  return 
for  the  suspension  of  union  standards,  that  pre-war  conditions  would 
be  restored,  in  each  controlled  industry,  after  the  war.  Practically 
everyone  now  recognizes  the  impossibility,  and  many  the  undesirability, 
of  making  good  this  promise.  In  the  United  States,  the  chief  thing 
the  unions  have  given  up  during  war  time  is  the  right  to  strike,  and 
events  have  shown  that  the  national  union  officials  could  not  always 
hold  the  men  even  to  this  sacrifice.  Nevertheless,  in  America  as  in 
England,  organized  labor  has  been  compelled  to  stand  by  while  an 
unprecedented  influx  of  women  was  taking  place.  Needless  to  say, 
the  settlement  of  the  conditions  and  standards  to  exist  after  the  stress 
of  war  is  over,  and  the  women,  through  whom  dilution  has  been  accom- 
plished, continue  to  lay  claim  to  their  jobs,  will  be  a  big  problem.  It 
is  not  probable  that  the  women  will  docilely  give  up  their  newly  gained 
position. 

Alt  this  would  open  up  a  consideration  of  the  industrial  recon- 
struction problem  at  large;  specifically  in  point  here  is  the  function 
which  works  committees  may  subserve  in  helping  us  toward  a  solution 
of  the  new  problems  resulting  from  the  permanent  entrance  of  w^omen 
into  trades  and  industries  to  which  in  pre-war  days  they  w^ere  strangers. 

Considerations  both  of  justice  and  expediency  would  seem  to 
counsel  both  the  right  of  women  to  vote  for  committee  members,  and 
full  recognition  and  representation  on  the  committee  itself.  If  men 
employees  object  to  the  autocratic  control  of  industry  by  employers, 
they  cannot  consistently  withhold  the  voting  and  office-holding  priv- 
ilege from  the  women.  Aloreover,  w^omen  as  competitors  for  jobs  are 
far  more  dangerous  when  left  to  themselves,  as  a  segregated  class  with 
whom  the  employer  can  bargain  individually,  than  they  will  be  when 
recognized  by  the  men  as  co-workers  and  admitted  into  the  councils 
of  labor.  Neither  managers  nor  men  can  consistently  dwell  upon  the 
beauty  and  utility  of  works  esprit  de  corps  if  a  large  part  of  the  work- 
ing force,  either  the  women  or  the  unskilled  men,  is  left  to  one  side 
with  only  indirect  representation.  Even  in  such  comparatively  non- 
contentious  matters  as  w^elfare  arrangements,  women  employees  have 
needs  and  points  of  view  which  cannot,  and  will  not,  be  given  due 
consideration  by  a  committee  composed  entirely  of  men.     In  large 

101 


plants,  employing  many  women,  it  is  entirely  possible  that  the  women 
should  have  special  committees  of  their  own,  though  it  can  be  laid 
down  as  a  general  principle  of  industrial  democracy  that  they  should 
have  a  vote  for,  and  proportionate  representation  on,  the  membership 
of  the  general  works  committee  and  upon  the  committee  of  all  crafts 
and  shops  in  which  they  are  at  work  in  appreciable  numbers.^ 

Actual  practice  in  England  varies.  The  Report  on  Works  Com- 
mittees gives  detailed  account  of  committees  in  twenty-three  establish- 
ments. Out  of  the  thirteen  in  this  list  for  which  information  on  the 
matter  is  given,  four  give  the  women  neither  vote  nor  representation, 
one  gives  indirect  representation,  and  eight  give  women  practical 
equality  of  rights  w^ith  men. 

(6)  Tenure  of  office  of  committee  members — This  runs  all  the 
way  from  a  month  to  a  year.  No  general  rule  can  be  laid  down  as  to 
what  is  the  best  length  of  service.  Two  American  firms,  the  Browning 
Company  and  the  White  Motor  Company,  both  of  Cleveland,  have  a 
rotary  system  of  membership.  In  the  Browning  Company  there  are 
some  new  men  at  every  meeting  of  the  committee.  In  the  White  Motor 
Company  the  personnel  of  the  committee  changes  monthly,  but  the 
average  length  of  service  is  six  months. 

(7)  Other  const  it  utiofutl  questions — Supposing  it  to  be  settled 
what  committees  shall  be  established,  who  shall  vote  for  them,  and  who 
is  eligible  for  membership,  there  remain  certain  other  constitutional 
questions. 

Secret  ballot  desirable — In  general,  election  should  be  by  secret 
ballot.  It  is  not  clear  what  the  English  practice  is — if  there  is  any 
rule.  Six  or  seven  of  the  firms  reporting  w'orks  committees  say  mem- 
bers are  chosen  "by  ballot";  one  specifies  secret  ballot.  The  Macy 
Board  specifies  election  by  secret  ballot.  The  War  Labor  Board  states 
merely  that  the  examiner  or  his  substitute  shall  "have  the  power  to 
make  the  proper  regulations  to  secure  absolute  fairness." 

Minority  representation — The  National  War  Labor  Board,  but 
not  the  Macy  Board,  has  directed,  in  several  of  its  awards,^  that  "the 
examiner  shall  provide,  wherever  practicable,  for  minority  representa- 
tion' by  limiting  the  right  of  each  voter  to  a  vote  for  less  than  the  total 
number  of  the  committee  to  be  selected."  This  is  theoretically  a  wise 
provision,  but  in  practice  has  not  been  found  to  work  well  on  account 
of  the  difficulty  the  men  have  in  understanding  it.     For  this  reason 

*  The  National  War  Labor  Board,  in  its  instructions  to  its  examiners,  says:  "Women 
should  not  be  given  representation  ordinarily  by  means  of  separate  committees,  but  by  being 
given  a  definite  number  of  members  on  the  department  committees  where  their  numbers 
entitle   them    to    places    on   the   committees.'' 

'  Employees   vs.    General    Electric    Co.,    Pittsfield   Works,    Docket    No.    19. 

•  Employees  vs.    Smith   &   Wesson   Co.,   Docket   No.   273.      See  Appendix   VII,  p.   244. 

102 


i 


\ 


minority  representation  has  not  been  provided  for  in  any  recent  award. 
Minority  representation,  arranged  in  the  simplest  possible  w^ay  and  not 
adopted  until  it  was  thoroughly  considered  and  understood  by  a  works 
committee  already  organized  might  prove  desirable.  It  should  con- 
tribute to  the  task  of  securing  fair  representation  to  all  interests,  and 
might  prove  to  be  one  method  by  which  the  problem  produced  by  the 
presence  of  both  union  and  non-union  men  in  the  same  plant  could 
be  met.  In  certain  American  firms  the  employees  elect  half  the  mem- 
bers of  the  committee  and  the  management  appoints  the  other  half — 
naming  non-union  men  when  the  employees  choose  union  men,  and 
vice  versa.  Some  minority  representation  plan  would  seem  to  give 
promise  of  better  results,  and  would  leave  the  choice  of  the  entire  com- 
mittee membership  where  it  should  be — in  the  hands  of  the  employees 
themselves. 

Recall — The  Midvale  Steel  and  Ordnance  Company's  plan  pro- 
vides for  the  recall  of  committee  members  by  petition  of  not  less  than 
two-thirds  of  the  employees  concerned.^ 

Officers — Existing  works  committees,  in  England,  usually  have  two 
officers,  a  chairman  and  a  secretary.  Their  tenure  of  office  is  often 
unfixed,  although  a  fixed  service  with  periodical  election,  not  too  fre- 
quent, seems  desirable. 

Secretary — The  position  of  Secretary  is  of  great  importance.  A 
good  secretary  may  insure  the  success  of  the  committee  plan,  a  poor 
one,  its  temporary  failure.  A  large  part  of  the  active  w^ork  of  the 
committee  is  usually  done  by  the  secretary.  Difficulties  are  reported  to 
him  by  the  workmen,  either  directly  or  through  a  committee  member, 
and  he,  upon  consultation  with  the  committee  if  the  matter  be  of  suf- 
ficient importance,  brings  the  matter  before  the  management.  Such 
difficulties  may  often  be  settled  at  once,  and  their  settlement  simply 
reported  to  the  works  committee.  A  great  deal  of  w^ork  may  thus 
devolve  on  the  secretary,  as  consulting  the  workmen  and  interviewing 
the  management,  and  the  secretary  may  thus  carry  upon  his  shoulders 
a  large  amount  of  current  work,  rendering  it  possible  for  the  commit- 
tee as  a  w^hole  to  deal  with  larger  questions.  Because  of  this  function 
as  a  go-between,  the  secretary  should  have  freedom  of  movement  in 
the  different  departments  of  the  plant  without  being  required  to  ask 
the  consent  of  the  foremen  or  the  superintendent.  The  amount  of  free- 
dom necessary  in  particular  cases,  and  the  members  of  the  committee 
to  whom  it  should  be  allowed,  will  vary  with  the  size  of  the  plant  and 
other  circumstances.  The  duties  of  the  secretary  will  interfere  some- 
what w^ith  his  own  work  as  an  artisan,  and  he  is  bound  to  lose  time. 

*  See  Appendix  V,  p.  210. 

103 


Fay  of  the  secretary— Tht  question  of  the  secretary's  pay  is 
important.  In  some  cases  he  is  paid  ordinary  time  wages  for  the  time 
he  spends  on  his  duties  during  working  hours ;  where  piece-rates  pre- 
vail he  may  be  paid  the  average  wage  of  his  craft;  still  another  method 
is  for  his  companions  to  keep  his  machine  running  in  his  absence. 
There  is  room  for  argument  that  the  company  should  pay  him  full 
wages,  but  the  employees  may  well  object  to  this,  on  the  ground  that  it 
would  make  him  more  the  representative  of  the  employer  than  of  the 
men.  In  some  cases  the  secretary  is  paid  for  his  lost  time  by  the 
employees. 

She  of  committee — Committees  should  be  large  enough  to  be  rep- 
resentative without  being  unwieldy.  On  the  works  committee  there 
should  be  direct  representation  of  each  shop  or  department;  this  insures 
a  fairly  large  committee.  In  practice,  committees  vary  in  size  from 
ten  to  thirty,  and  some  of  the  recently  established  industrial  represen- 
tation plans  in  this  country  involve  still  larger  committees.  It  is  doubtful 
if  real  committee  work  can  be  done  by  a  body  of  much  over  twenty 
meml>ers.  A  committee  of  ten  or  twelve  will  accomplish  more  real  work 
than  one  of  double  the  size,  provided  the  smaller  committee  is  repre- 
sentative of  all  interests.  Where  large  committees  are  necessary  there 
should  be  standing  sub-committees  for  various  purposes,  and  a  sub- 
committee of  the  best  men  to  represent  the  main  committee  in  special 
conferences  with  the  management.  Where  the  works  committee  is  a 
joint  committee,  the  various  shop  committees  may  serve  as  sub-commit- 
tees of  it. 

(B)  Procedure. 

Questions  of  procedure  include  time  and  frequency  of  meetings, 
preparation  of  agenda,  distribution  of  minutes,  provision  for  ref- 
erenda, etc. 

( 1  )  Time  and  Frequency  of  Meetings—It  is  a  question  whether 
the  committee  should  hold  meetings  at  stated  intervals  or  only  as  occa- 
sions may  arise.  There  are  arguments  for  and  against  either  pro- 
cedure. If  regular  meetings  are  held,  or  held  too  often,  they  may 
become  perfunctory  for  lack  of  real  business  to  do.  On  the  other 
hand,  they  provide  a  known  and  regular  time  for  raising  questions,  and 
they  enable  questions  to  come  up  in  their  initial  stages,  whereas  if 
meetings  are  not  held  until  occasions  arise,  conditions  may  have  grown 
acute  before  a  meeting  is  held.  Finally,  by  bringing  representatives  of 
the  men  and  management  into  constant  contact,  regular  meetings  accus- 
tom each  side  to  seeing  and  acquiring  interest  in  the  point  of  view  of 
the  other.     Employers  complain  that  work  people  expect  all  questions 

104 


•  E     « 


»,  ^    # 


«     .     • 


1 


to  be  settled  off  hand  and  fail  to  realize  that  investigation  may  be 
necessary;  this  suggests  another  argument  in  favor  of  regular  meetings. 
They  form  also  a  permanent  and  business-like  substitute  for  frequent 
sectional  deputations.  The  main  thing,  however,  is  that  the  committee, 
or  its  delegates,  should  have  access  to  the  management,  and  if  need  be 
to  the  highest  officials  whenever  there  is  need  of  it. 

Various  plans  as  to  time  when  meetings  are  held  are  followed: 
(a)  The  meetings  are  held  on  company's  time  and  the  members 
paid  full  rates  for  time  thus  spent.  This  plan  is  most  frequent  when 
management  and  men  have  regular  joint  meetings,  (b)  The  commit- 
tee meets  after  working  hours.  As  the  works  committee,  to  fulfil  its 
purpose,  inust  react  to  the  interest  of  the  whole  plant — the  employers'  as 
well  as  the  employees' — this  plan  does  not  seem  quite  fair  nor  likely  to 
give  the  best  results,  (c)  Meetings  are  held  partly  on  company  time, 
partly  on  the  time  of  the  men.  This  plan  is  workable  in  practice,  pro- 
vided the  working  day  is  not  too  long.  Looked  at  in  the  broadest  and 
best  light,  the  contractual  relation  between  employer  and  employee  is  one 
in  which  the  employer  purchases  service — service  of  hand  and  of  brain. 
If  the  works  committees  are  worth  while  the  men  who  attend  their 
meetings  and  take  part  in  their  deliberations  are  performing  a  service 
to  the  employers ;  in  so  far  as  the  committee  system  is  successful  it 
will  make  for  the  satisfaction  and  contentment  of  the  employees; 
absenteeism  and  labor  turnover  will  be  reduced,  and  a  community 
spirit  built  up  in  which  the  stop  watch  and  piece  bonuses  will  not  be 
necessary  to  secure  a  fair,  continuous  rate  of  industrial  output.  The 
services  of  the  committee  will  thus  have  a  distinct  value  to  the 
employer — a  value  to  some  extent  measurable  in  money  terms.  It 
may,  therefore,  be  argued  that  all  committee  meetings  should  be  held 
on  company  time.  In  the  long  run,  however,  since  the  committees  are 
designed  to  the  mutual  benefit  of  employer  and  employees,  the  latter 
may  prefer,  in  self-respect,  to  donate  part  of  the  time  spent  in  meetings. 

(2)  Time  the  management  should  devote  to  committees — The 
amount  of  time  the  management  will  need  to  give  to  joint  conferences 
will  vary.  One  committee  in  an  English  establishment,  in  which  the 
relations  have  always  been  good,  has  met  the  management  on  an  aver- 
age only  three  times  a  year  in  the  last  twenty-four  years,  though  since 
the  war  the  number  of  meetings  has  increased  to  seven  a  year.  During 
the  whole  existence  of  this  committee,  however,  the  right  of  separate 
trade  representations  to  meet  the  management  has  been  freely  used. 
It  goes  without  saying  that  during  the  war,  and  through  the  even  more 
trying  period  of  reconstruction  to  come,  works  committees  will  be 
called  upon  to  spend  much  more  time  and  thought  on  questions  of 
organization  and  employment  conditions  than  in  settled  times  of  peace. 
It  should  be  evident,  also,  that  those  employers  and  those  groups  of 

105 


employees  Nvho  shall  liave  caught  the  co-operative  spirit  and  prefer  to 
solve  the  questions  and  differences  that  arise  between  capital  and  labor 
by  the  fair  and  square  method  of  open  discussion,  rather  than  in  the 
old-time  coercive  and  contentious  way,  will  be  glad  to  devote  a  large 
amount  of  time  ana  energy  to  joint  conference. 

(3)    J'iacc  of  mcetiny—Thc  employer  should  provide  a  suitable 
place   for   committee   meetings.     This   does   not   mean   a  corner  in   a 
drafty  machine  shop,  but  a  comfortable  room  large  enough  to  seat  the 
entire  committee.     If  they  can  be  seated  about  a  large  table,  so  much 
the  better.     The  management  should  also  provide  a  filing  cabinet,  a 
typewriter,  and  when  necessary  the  services  of  a  typist  or  stenographer. 
In  the  initial  stages  of  works  committees  in  this  country,  tlie  question 
of  meeting  place  is  likely  in  some  instances  to  be  a  bone  of  contention. 
Some  employers  will  want  all  meetings  held  on  the  plant  premises, 
under  the  eye,  so  to  speak,  of  the  management ;  on  the  other  hand  some 
uncompromising    unionist    employees    will    be    zealous    to    guard    the 
influence  of  their  unions  and  will  want  meetings  held  outside,  in  some 
public  hall,  perhaps  even  at  the  headquarters  of  the  local  union.     All 
that  can  be  said  of  such  a  situation  is  that  it  does  not  argue  well  for 
the  success  of  the  committee.     If  the  men  cannot  hold  their  meetings 
in  the  plant  without  fear  or  suspicion  of  management  influence,  and 
if  the  management  fears,  because  of  antipathy  to  union  influence  to 
have  the  men  hold  their  meetings  wherever  they  please,  a  rock  of  sus- 
picion and  contention  stands  in  the  way  from  the  outset.    The  only  way 
around  it  is  through  a  tentative  give  and  take  on  both  sides.     Let  some 
meetings  be  held  inside  the  yard,  some  outside,  until  it  is  demonstrated 
beyond  a  doubt  that  both  sides  are  playing  fair,  or  that  one  or  the  other 
cannot  be  trusted. 

(4)  Procedure  in  meetings — Xo  general  rules  can  be  laid  down 
on  this  matter,  further  than  to  say  that  the  employees  should  be  left 
to  develop  their  own  rules.  Where  there  is  an  employment  manager 
who  has  the  proper  confidence  of  the  men  he  will  no  doubt  be  fre- 
quently consulted,  but  he  should  be  scrupulously  careful  not  to  **lead" 
too  much.  In  joint  committees  a  representative  of  the  management 
may  preside ;  in  some  cases — and  this  is  the  better  practice — a  repre- 
sentative of  the  management  presides  at  one  meeting  and  a  representa- 
tive of  the  employees  at  the  next. 

Procedure  is  usually  informal.  The  procedure  of  joint  commit- 
tees is  determined  by  their  essential  nature  and  function.  The  func- 
tions of  works  committees  are  practically  always  consultative.  With- 
out the  concurrence  of  the  managem.ent  they  can  settle  nothing.  "The 
management  has  the  executive  power,  and  unless  the  management  is 
impressed  by  the  representations  of  the  members  of  the  committee,  or 

106 


f 


•      • 


by  the  sanction  which  lies  behind  them,  those  representations  will  not 
lead  to  executive  action."^  Ordinarily,  therefore,  the  deliberations  of 
a  joint  committee  must  result  in  unanimity  of  opinion  on  essential 
points,  although  there  are  cases  in  which  a  majority  rule  is  accepted 
as  decisive.  Where  this  is  the  case,  the  constitution  of  the  committee 
usually  provides  that  representatives  of  men  and  of  management  shall 
be  present  in  equal  numbers.^  Such  provision,  how^ever,  tends  to 
enhance  the  formality  of  the  whole  system,  and  under  too  much  formal- 
ity, mutual  "touch"  and  confidence  are  not  so  likely  to  be  attained. 
The  operation  of  a  joint  committee  is  really  in  the  nature  of  a  con- 
sultation between  two  parties — consultation  which,  if  it  results  in 
unanimity,  results  in  action,  but  not  otherwise.  It  is  a  mistake  to  think 
loo  much  in  terms  of  voting,  or  to  think  that  even  if  there  is  voting, 
its  result  is  to  be  a  formal  decision  by  a  majority  vote.  What  should 
take  place  is  rather  discussion  by  which  misunderstanding  is  removed.* 

(5)  Agenda — In  English  plants,  a  list  of  agenda  is  circulated  in 
order  that  committee  members  may  know  before  hand  what  is  to  come 
up.  Preparation  of  business  for  a  coming  meeting  is  the  function  of 
the  secretary. 

(6)  Minutes — In  some  plants  the  minutes  of  each  meeting  are 
typed  and  sent  to  the  various  shops.  They  may  be  posted  on  the 
bulletin  boards.  One  American  employer  objects  that  the  men  waste 
too  much  time  about  the  bulletins  when  this  is  done.  It  may  be,  how- 
ever, that  interest  manifested  in  committee  action  does  not  represent 
a  real  waste  of  time. 

(7)  Referendum — In  very  important  questions  the  committee 
may  decide  to  submit  proposals  to  all  the  employees  of  the  shop,  or  the 
plant,  as  the  case  may  be.  Ordinarily  this  should  be  done  in  writing, 
and  time  given  for  calm  consideration  and  decision.  Mass  meetings 
are  impracticable  in  large  plants  and  should  be  resorted  to  sparingly  in 
any  plant,  large  or  small.  Mass  meetings,  as  a  method  of  pure  democ- 
racy, too  easily  become  a  device  of  demagoguery,  either  on  the  part  of 
the  management  or  the  men.  The  good  talker  always  gets  a  hearing, 
whether  his  ideas  are  good  or  not. 

(8)  Relation  of  the  ivorks  committee  to  foremen — The  foreman 
occupies  a  peculiar  and  difficult  position.  On  the  one  side  he  repre- 
sents the  management ;  upon  him  devolves  the  duty  of  getting  as  much 
as  he  can  out  of  the  workmen.  On  the  other  hand,  he  is  not,  strictly 
speaking,  a  part  of  the  management;  his  interests  and  tastes  are 
ordinarily  those  of  the  working  class  to  which,  socially,  he  belongs. 


*  Works   Committees,   p.   27. 

*  For  instance,  in  the  Colorado  Fuel  and  Iron  Company  Industrial  Pain. 
V,  p.    170. 

*  Works    Committees,    p.    28. 

107 


See  Appendix 


His  point  of  view  is  thus  a  mixture  and  a  compromise.  Some  foremen 
attempt  to  be  tyrannical  and  will  decide  every  doubtful  case  in  favor 
of  the  employer.  Others  lead  their  men  by  sympathy,  tact,  and  real 
endeavor  to  give  the  men  as  well  as  the  company  a  square  deal. 

Were  all  foremen  of  this  latter  type — properly  chosen  on  the  basis 
not  only  of  their  technical  ability,  but  of  their  sympathetic  understanding 
and  fair-mindedness — there  would  be  little  objection  to  their  sitting  as 
members  of  shop  and  works  committees.  Unfortunately,  however,  it 
is  not  possible  to  have  workmen  and  foremen  so  harmoniously  related 
that  grievances  will  not  arise.  Moreover,  foremen  are  likely — being 
only  human — to  oppose  any  change  of  process  or  organization  which 
threatens  to  encroach  upon  the  powers  they  have  liitherto  exercised. 
These  considerations  led  the  investigators  for  the  British  Ministry  of 
Labor  to  conclude  that  foremen  should  not  be  members  of  the  shop 
or  works  committees,  although  separate  foremen's  committees  may  be 
recommended.^  Mr.  C.  G.  Renold  advances  another  objection,  based 
upon  the  extensive  experience  of  his  company.  In  any  but  very  small 
plants,  he  holds,  it  would  hardly  be  possible  to  make  all  foremen  mem- 
bers of  the  works  committee,  and  for  two  reasons :  First,  discussion 
would  be  less  frank  if  foremen  were  present,  as  they  could  hardly  avoid 
being  on  the  lookout  for  attacks  upon  their  authority.  One  of  the 
main  advantages  of  a  works  committee  scheme,  Mr.  Renold  further 
holds,  is  the  opportunity  for  workers  occasionally  to  get  past  the  fore- 
men into  direct  touch  with  the  higher  management.  Second,  the 
management  should  be  represented,  where  there  are  joint  committees, 
by  the  highest  active  plant  officials  of  the  firm,  and  to  include  the  fore- 
men would  make  the  committee  too  cumbersome. - 

It  is  conceded  that  it  would  be  unfair,  however,  to  the  foremen  if 
they  were  not  kept  informed  with  regard  to  what  the  committees  are 
doing.  Previous  notice  should  be  given  of  all  subjects  to  be  brought 
up  at  a  works  committee  meeting,  so  that  a  full  agenda  may  be  pre- 
pared. This  agenda  should  then  be  circulated  freely  among  the  fore- 
men and  others  of  the  lower  grades  of  management,  so  that  they  may 
know  what  is  going  on.  Full  minutes  of  the  proceedings  should  also 
be  circulated  to  all  grades  of  management.  These  and  other  arrange- 
ments which  may  suggest  themselves  will  make  it  possible  to  leave  the 
foremen  out  of  the  membership  of  committees  without,  at  the  same 
time,  undermining  their  authority.^ 

Exclusion  of  foremen  from  shop  and  works  committees  does  not 
mean  by  any  means  that  they  are  to  be  set  ofif  by  themselves  and  given 
no  share  in  the  co-operative  management  of  labor  conditions.    As  just 

1  Works   Committees,   p.   29. 

2  Kirkaldy.  Industry  and  Finance,  1917,  pp.   183  185. 

'  Works   Committees,  pp.   28,   29,   also    Kirkaldy,   Industry   and   Finance,   pp.    183-185. 

108 


1 


«  I    » 


noted,  they  are  to  be  kept  informed  with  regard  both  to  business  to 
come  before  the  committee  and  to  what  the  committee  has  done. 
Knowing  what  is  coming  up,  they  have  a  right  to  make  suggestions  to 
the  secretary  and  to  talk  with  the  men. 

Beyond  this,  however,  some  measure  should  be  taken  to  develop 
the  esprit  de  corps  and  co-operative  tendency  among  the  foremen  them- 
selves. This  may  be  done  either  through  committees  of  foremen, 
through  lectures  and  talks  to  foremen  by  the  employment  manager  and 
others,  or  through  typed  matter  put  into  the  hands  of  each  foreman  at 
suitable  intervals  by  the  works  management.  General  works  lectures 
and  lectures  to  the  management  and  staff  by  an  outside  expert  called 
in  to  make  a  survey  of  the  entire  concern  have  been  instituted  by  an 
English  firm  with  flattering  success.^  Special  lectures  by  a  sympathetic 
expert  observer  and  critic  may  be  given  to  the  foremen  alone. 

A  better  plan  involves  the  formation  of  a  foremen's  committee  or 
association.  This  plan  has  been  started  by  the  Mobile  Shipbuilding 
Company,  Mobile,  Alabama.  The  General  Alanager  of  this  Company, 
Mr.  Frank  McLaughlin,  describes  this  organization  as  follow^s: 

Foremen's  Committee— \We  have  formed  what  is  known  as 
the  Moshico  Foremen's  Association.     As  its  name  signifies,  it  rep- 
resents all  the  foremen  employed  by  our  company.     To  become 
eligible   for  membership  in  this  association,   candidates  must  be 
classified  upon  our  books  as  foremen  or  leading  men  in  the  yard. 
The   By-laws  Committee  have  ruled  that  our  General  Superin- 
tendent and  all  Assistant  Superintendents  and  foremen  below  him 
are  eligible  for  active  membership.     The  same  committee  has  ruled 
that  all  the  officials  of  the  company,  from  the  President  to  the 
General   Superintendent,   are  eligible   for  honorary  membership. 
The   Moshico   Foremen's   Association  has   at  present   sixty-three 
members.     A  bi-weekly  dinner  is  given  every  other  Monday  night. 
The  business  sessions  convene  immediately  after  the  dinner  and 
last  for  two  or  three  hours.     Foremen's  meetings  are  also  held  in 
the  yard  at  least  twice  a  week,  where  views  are  exchanged.     We 
find   that   the   bi-weekly   dinner  is   a  great  factor  in  promoting 
harmony  and  good  feeling  among  the  various  foremen.- 
.     While  examples  of  full-fledged  works  committees  or  systems  of 
co-operative  management  are  few  and  far  between  in  the  United  States, 
there  is  indication  that  some  sort  of  foremen's  committee,  or  commit- 
tee of  executives  including  foremen,  is  not  uncommon.     In  some  cases 
the  committees  are  in  the  nature  of  production  or  efficiency  commit- 
tees, in  which  case  they  may  or  may  not  contribute  to  good  feeling 

'See    Garton    Foundation,    Memorandum    on    the    Industrial     Situation    after    the    War 
(Emergency   Fleet   Corporation   Reprint)    p.    76. 

2  Letter,   August  '20,    1918.  .,    , 

109 


between  management  and  employees.  This  will  depend  largely  upon 
the  personality  and  point  of  view  of  the  men  who  take  the  leadership 
in  managment  matters.^ 

General  principles  which  should  govern  procedure — ^Certain  gen- 
eral principles  should  govern  the  procedure  of  committees.  While  no 
general  rules  can  be  laid  down  for  all  types  of  committees,  the  follow- 
ing principles  should  be  kept  in  mind : 

( 1 )  As  much  democracy  in  committee  action  as  is  consistent  with 
efficiency  and  promptness  should  be  sought  for.  Important  questions 
should  go  to  a  referendum.  Even  where  this  is  not  necessary,  it  will 
help  to  keep  up  the  interest  of  the  workers  at  large,  who  may  at  times 
carry  into  industrial  democracy  that  same  apathy  which  more  highly 
educated  citizens  not  infrequently  evince  in  the  field  of  political 
government. 

(2)  Do  not  multiply  red  tape  or  extend  formalism  unnecessarily. 
In  small  committees  strict  parliamentary  usage  is  not  necessary.  In 
large  ones  it  is. 

(3)  See  that  the  committees  have  something  to  do  and  do  it. 
Otherwise  interest  will  lag,  and  sooner  or  later  both  the  management 
and  the  employees  will  say  that  the  committees  do  not  amount  to  any- 
thing. Here  and  there  a  firm  complains  of  this  lack  of  interest  with- 
out being  able  to  state  the  causes.     These  probably  lie  in  the  absence 

»  The  following  are  a  few  examples  of  committees  upon  which  foremen  sit,  which  have 
come   to  notice   through   letters   from   industrial   firms:  * 

Cornell  Wood  Products  Co.,  Cornell^  Wisconsin. — "Foremen  meet  monthly  with  executives 
of  the  property  who  are  located  at  the  plant  and  discuss  the  various  problems  which  have 
come    up   the   previous  month." 

rembcrthy  Injector  Co..  Detroit. — There  are  monthly  meetings  attended  by  the  various 
foremen,  the  sup>erintendent,  and  other  executives  of  the  company.  "We  have  also  made 
it  a  practice  to  invite  three  or  four  employees  to  attend.  At  these  meetings  criticisms  and 
suggestions  relating  to  our  shop  practices  and  policies  are  invited,  and  if  the  criticism  is 
sound,  a  committee  is  appointed  by  the  chairman  to  investigate  and  report  their  findings  and 
suggestions  at  the  next  meeting  (unless  the  matter  is  satisfactorily  settled  by  discussion  when 
it  is  first  put  forward),  at  which  time  the  remedy  proposed  is  discussed  and  criticized  and 
if  It  appears  pract|cal.  put  to  a  vote.  If  the  majority  are  in  favor,  it  is  immediately  tried 
out  in  the  shop.  From  the  time  it  is  in  practice  in  the  shop,  its  continuation  is  left  entirely 
in   the   hands   of   the   management   to  decide." 

E'c'erlastick,  Inc.,  Bridgeport,  Conn. — "We  have  seven  plants.  In  all  of  these  plants 
we  have  meetings  of  the  foremen  and  heads  of  departments  to  consider  all  practical  questions 
in  connection  with  the  operation  of  the  mill,  and  working  conditions.  The  question  of  wage 
is  not  a  matter  for  discussion  at  these  meetings.  All  other  matters,  however,  are  proper 
fur    discussion    at    these    foremen's    meetings." 

F.  C.  Huyck  &  Sons,  Albany.  N.  Y. — "Our  organization  is  small  and  we  employ  475 
men,  women,  boys,  and  girls,  and  they  are  nearly  equally  divided.  .Most  of  our  foremen 
have  grown  up  from  the  ranks  and  with  our  superintendent  and  the  officials  of  the  company 
form    a    committee    for    the    whole    plant." 

Standard  Woven  Fabric  Co.,  Walpole,  Mass. — There  is  a  foremen's  committee,  which 
holds  weekly  meetings  "at  which  plant  matters  are  taken  up  and  discussed,  such  as  sug- 
gestions, changes,  and  personal  matters.  This  system  has  been  in  operation  approximately 
a   year   and    works    well." 

Wm.  Dcmuth  S"  Co.,  New  York  City. — This  company  in  1917  established  an  "industrial 
democracy"  plan  modeled  on  the  analogy  of  the  Federal  Government,  with  a  House  of 
Representatives,  a  Senate,  and  a  Cabinet.  The  latter  consists  of  the  higher  executive 
officers.  The  Senate  includes  superintendents,  heads  of  departments,  and  the  foremen. 
(See  article  on  "An  Industrial  Democracy,"  by  Ellsworth  Sheldon,  in  American  Machinist 
August   1,   1918). 

A  Massachusetts  firm  which  does  not  wish  to  be  named  has  what  it  calls  an  operating 
committee,  appointed  by  the  management  and  consisting  of  the  foremen  and  sub-foremen 
of  the  various  departments.  This  committee  meets  regularly  once  a  week  and  considers 
ijuestions  pertaining  to  the  various  departments.  It  has  been  able  to  make  some  very 
helpful  suggestions,  and  has  decidedly  increased  the  co-operation  between  the  different 
departments.  It  reports  its  recommendations  to  another  committee  called  the  ekciency 
committee,  consisting  of  the  heads  of  departments,  which  in  turn  refers  such  of  its  findings 
as   it    deems   necessary   to  the   president. 

110 


of  an  active  and  progressive  employment  service  department,  and  in 
lukewarmness  on  the  part  of  the  management  toward  the  committee 
idea.  The  guidance  and  success  of  the  committee  depend  largely  upon 
its  secretary  and  the  employment  manager. 

(4)  See  that  committees  are  organized  on  a  thoroughly  demo- 
cratic basis,  in  order  that  all  classes  of  employees  may  be  represented 
and  have  a  hearing.  There  is  no  inherent  reason  why  the  office  force 
should  not  have  its  own  committees,  and  perhaps  be  represented  on  the 
general  works  committees. 

(5)  Let  co-operation  and  frankness  be  the  watchwords. 


Ill 


Chapter  V.     Works  Committees  In  the  United  States 


Interest  in  co-operative  mamigcmeut — There  are  unmistakable 
indications  that  interest  in  co-operative  management  and  especially  in 
works  committees  is  growing  in  this  country.  These  indications  are 
to  be  found  in  the  actual  or  proposed  institution  of  committees  in 
various  plants,  in  official  and  semi-official  pronouncements  on  the  sub- 
ject, as  well  as  in  the  committees  which  have  been  set  up,  in  shipyards 
and  elsewhere,  under  Government  encouragement  or  direction.  Most 
important  to  the  future  of  co-operative  management  is  the  attitude  of 
organized  labor  as  well  as  that  of  capital. 

American  Federation  of  Labor — One  of  the  most  significant  utter- 
ances is  that  of  the  Executive  Council  of  the  American  Federation 
of  Labor  :^ 

The  Executive  Council  beHeves  that  in  all  large  permanent 
shops,  a  regular  arrangement  should  be  provided  whereby: 

first,  a  committee  of  the  workers  would  regularly  meet  with 
the  shop  management  to  confer  over  matters  of  production;  and 
whereby : 

Second,  such  committee  could  carry,  beyond  the  foreman  and 
the  superintendent,  to  the  general  manager  or  to  the  president,  any 
important  grievance  which  the  workers  may  have  with  reference 
to  wages,  hours,  and  conditions. 

It  is  fundamental  for  efficiency  in  production  that  the  essen- 
tials of  team  work  be  understood  and  followed  by  all.  There 
nuist  be  opportunity  for  intercourse  and  exchange  of  viewpoints 
between  workers  and  managers. 

The  constructive  demands  outlined  above  are  predicted  upon 
the  basic  principle  of  the  right  and  opportunity  of  workers  to 
organize  and  tnake  collective  agreements.  There  is  no  other  way 
to  bring  about  co-operation  for  production  except  by  organization 
of  workers.  Organization  is  the  orderly  system  for  dealing  with 
questions  which  concern  Labor  in  order  that  decisions  and  adjust- 
ments may  be  reached  that  further  the  best  interests  of  all  con- 
cerned. Em])loyers  and  workers  must  talk  over  matters  of  mutual 
inteiL.si  and  reach  understandings.  In  present  large  scale  indus- 
try this  can  he  done  only  by  use  of  the  representative  system  of 
what  is  commonly  called  collective  bargaining,  which  is  the 
foundation  of  all  effective,  just  labor  administration. 

^  Thirty-eighth   Annual   Report,    1918,   p.   85. 

112 


«       » 


J 


1|> 


The  Executive  Committee  of  the  Socialist  Party,  at  a  meeting  in 
Chicago,  August  10,  1918,  adopted  a  Reconstruction  Program,  which 
contains  the  following  paragraphs : 

"Self-government  in  industry  is  the  first  essential  of  a  truly  demo- 
cratic nation,  and  the  only  guarantee  of  real  freedom  for  the  workers. 
The  Socialist  Party,  therefore,  demands  that  the  right  to  organize  be  a 
fundamental  right  for  all  government  employees,  and  that  the  right  to 
strike  be  in  no  case  denied  or  abridged. 

"In  all  industries  controlled  by  the  government  there  shall  be 
established  principles  of  democratic  management  of  the  conditions  of 
employment  by  shop  commitees,  elected  by  the  workers." — The  Survey, 
Sept.  >,  1918,' p.  641. 

Chamber  of  Commerce  of  the  United  States— On  October  23, 
1918,  the  committee  on  Industrial  Relations  of  the  Chamber  of  Com- 
merce of  the  United  States  issued  a  set  of  "Preliminary  Suggestions 
for  Referendum  on  Industrial  Relations."  While  this  document  does 
not  definitely  recommend  works  committees,  it  calls  attention  to  the 
Whitley  Committee  recommendations  and  declares  that: 

Industrial  relations  which  the  worker  himself  has  a  hand  in 
creating  are  likely  to  be  more  satisfactory  even  though  they  are 
intrinsically  no  better  than  others  not  so  created.  Autocratic 
authority  is  likely  to  be  suspected  and  resisted  because  the  reasons 
for  its  acts  are  often  not  understood  and  its  motives  are  assumed, 
of  course,  to.be  selfish.  Further,  under  "right  principles  to  gov- 
ern industry,"  it  declares : 

The  right  of  the  worker   (as  well  as  any  other  group  in  a 

democratic  country)   to  organize  voluntarily  for  collective  action 

not  inimical  to  the  general  welfare  cannot  be  denied  or  resisted 

without  creating  a  sense  of  industrial  injustice.     Power  developed 

by  organization,  however,  cannot  be  permitted  to  work  injury  to 

the  national  welfare  nor  to  demoralize  the  industrial  process.     It 

is  the  duty  of  government  to  require  that  both  management  and 

men  function  efficiently  and  mould  their  motives. 

In  a  later  memorandum,  dated  December  2,  1918,  the  Committee 

on  Industrial  Relations,  gives  more  definite  expression  to  its  interest 

in   co-operative   management,   and   urges  the    formation  of   "national 

adjustment  boards"  in  each  industry. 

The  adjustment  of  industrial  relations,  not  by  conflict,  but  by 
agencies  established  for  the  purpose  in  which  the  workers'  interest 
has  equal  influence  with  that  of  the  employer  is  your  Committee's 
suggestion  to  meet  the  situation.  Where  employer  and  employees 
are  able  by  joint  action  to  create  an  effective  agency  for  the  regu- 
lation of  their  industry  on  the  basis  of  right  principles,  the  neces- 
sity for  federal  or  state  control  or  interference  will  be  minimized. 

113 


The  process  of  organizing  adjustment  boards  for  the  stand- 
ardization of  wages,  hours,  and  conditions  of  employment,  for  the 
interpretation  and  application  of  such  standards,  and  for  their 
enforcement,  has  been  going  forward.  Your  committee  approves 
this  principle  and  urges  the  various  industries  to  basten  the  organi- 
zation of  National  Adjustment  Boards  in  each  industry  following 
the  example  of  the  metals,  building,  and  needle  trades,  to  meet  the 
difficult  problems  of  reconstruction. 

The  Committee  now  voices  definite  approval  also  of  works 
committees : 

Employees  should  be  accorded  a  voice  in  determining  the  con- 
ditions under  which  their  work  is  performed  by  the  untrammeled 
election  of  plant  and  sbop  committees  to  deal  with  these  matters  in 
conjunction  with  management. 

Furthermore,  the  Committee  takes  a  leaf  out  of  Englisb  opinion 
and  sees  in  the  formation  of  national  joint  councils  a  way  to  regulate 
competition  and  to  establish  standards,  as  well  as  to  secure  good  feel- 
ing between  labor  and  capital. 

Industrial  managers  acknowledge  that  employment  conditions 
arc  frecjuently  not  satisfactory,  but  they  show  that  the  pressure  of 
competitive  conditions  may  make  it  impossible  for  the  single 
employer  or  individual  enterprise  to  improve  upon  them.  The 
plan  of  organizing  adjustment  boards  provides  a  remedy  for  this 
difficulty  by  assisting  each  industry  or  trade  to  establish  standards 
for  itself,  protected  against  the  demoralization  of  these  standards 
by  competition.  The  policy  of  determining  industrial  relations 
(wages,  hours,  and  conditions  of  employment),  not  only  by  a  proc- 
ess of  measuring  the  economic  strength  of  the  worker  against 
management,  but  by  a  process  in  which  reason,  public  policy, 
human  needs,  shall  predominate  over  might,  has  one  great  advan- 
tage— it  disposes  of  at  least  three-fourths  of  the  causes  of  friction 
and  strife  between  the  employer  and  his  employees.  Private  enter- 
prise and  initiative,  exercised  constructively,  will  be  accelerated 
rather  than  discouraged  by  thus  protecting  standards  of  industrial 
relations  to  fit  the  accepted  ideas  of  economic  justice. 

Power  won  from  a  reluctant  employer  by  labor,  organized 
economically  or  politically,  is  likely  to  be  used  more  unscrupulously 
and  with  less  constructive  wisdom  or  regard  for  public  welfare 
than  is  a  participation  in  management  granted  by  employers  in 
recognition  of  a  moral  right  of  the  worker  to  have  it,  in  so  far 
as  he  shows  himself  competent  to  exercise  it  without  abuse  and 
wisely. 

114 


-»    . 


Thus  we  have  the  leaders  of  organized  labor  on  the  one  hand 
and  representatives  of  capital  on  the  other,  if  not  actually  advocating 
co-operative  management,  at  least  lending  an  ear  to  those  who  do.  This 
is,  of  course,  by  no  means  proof  that  the  rank  and  file  of  organized 
labor  or  of  employers  will  take  kindly  to  the  idea,  at  least  for  some 
time  to  come. 

Pronouncements  from  governmental  agencies — From  Government 
agencies  we  have  the  awards  of  the  various  war  labor  adjustment 
boards,  the  circulars  of  the  Information  and  Education  Section  of  the 
United  States  Department  of  Labor  and  a  pronouncement  from  the 
War  Labor  Policies  Board. 

The  Information  and  Education  Service  of  the  Department  of 
Labor,  in  the  Summer  of  1918,  requested  manufacturing  concerns  all 
over  the  country  to  establish  so-called  ''war  industries  committees." 
The  functions  of  these  committees  were  limited  to  patriotic  service: 
(a)  "calling  meetings  when  government  representatives  are  sent  to 
address  the  men,  (b)  arranging  for  the  distribution  of  government 
literature,  (c)  arranging  parades  and  other  patriotic  demonstrations, 
(d)  keeping  all  informed  on  war  matters  and  government  activities,  so 
that,  knowing  their  country's  needs,  both  employers  and  employees  will 
eagerly  respond  to  the  call  of  duty."  It  is  probable  that  a  certain  num- 
ber of  these  committees  organized  for  patriotic  service  may  form  the 
nuclei   from   which  later  genuine  industrial  committees  will  develop. 

The  War  Labor  Policies  Board,  on  October  18,  1918,  issued  a 
statement  of  "Standards  Governing  the  Employment  of  Women  in 
Industry."     This  statement  contained  the  following  section: 

The  responsibility  should  not  rest  upon  the  management  alone 
to  determine  wisely  and  efifectively  the  conditions  which  should  be 
established.  The  genuine  co-operation  essential  to  production  can 
be  secured  only  if  definite  channels  of  communication  between 
employers  and  groups  of  their  workers  are  established.  The  need 
of  creating  methods  of  joint  negotiation  between  employers  and 
groups  of  employees  is  especially  great  in  the  light  of  the  critical 
points  of  controversy  which  may  arise  in  a  time  like  the  present. 
Existing  channels  should  be  preserved  and  new  ones  opened  if 
required,  to  provide  easier  access  for  discussion  between  an 
employer  and  his  employees. 

Finally,  the  decisions  of  the  National  War  Labor  Board,  the  Ship- 
building Labor  Adjustment  Board,  and  scattered  Government  awards 
elsewhere,  have  provided  for  the  establishment  of  shop  committees  in 
plants  engaged  on  Government  work. 

115 


ll 


Shipbuilding  Labor  Adjustment  Board  decisions — The  Shipbuild- 
ing Labor  Adjustment  Board  embodied  a  provision  for  "shop"  commit- 
tees in  most  of  its  original  awards  for  the  various  shipbuilding  dis- 
tricts. The  first  mention  of  shop  committees  in  shipyards  is  contained 
in  an  "Agreement  as  to  Working  Conditions  Between  Employers  and 
Employees  in  the  Yards  of  the  Columbia  River  District."  This  agree- 
ment was  made  an  integral  part  of  the  IMacy  Board's  "Decision  Touch- 
ing Disputes  in  Shipyards  of  San  Francisco  Bay  and  Columbia  River 
and  Puget  Sound  District."  This  was  signed  November  4,  1917.  The 
shop  committee  provision,  which  applied  specifically  to  the  Columbia 
River  District,  was  as  follows : 

1  he  employees  in  each  craft  or  calling  in  a  shop  shall  have 
the  right  to  select  three  (3)  of  their  number  to  represent  them  as 
members  of  a  shop  committee.  Each  member  of  this  committee 
shall  be  chosen  by  a  majority  vote  through  secret  ballot  in  such 
manner  as  the  employees  shall  direct.  The  chairman  of  each  craft 
committee  shall  be  a  member  of  the  joint  shop  committee. 

When  a  grievance  arises  it  shall  be  taken  up  by  the  commit- 
tee, first  with  the  foreman,  second  with  the  superintendent.  In  the 
event  the  question  has  not  been  adjusted  the  committee  shall  then 
take  the  matter  up  with  the  president  of  the  company.  If  the 
matter  cannot  be  adjusted  between  the  shop  committee  and  the 
president,  the  shop  committee  shall  have  the  right  to  call  into  con- 
ference with  the  president  a  representative  chosen  by  the  commit- 
tee. In  case  the  president  fails  to  adjust  the  matter  satisfactorily, 
it  shall  be  submitted  to  the  examiner  to  be  appointed  by  the  Ship- 
building Lal)or  Adjustment  Board  as  provided  in  memorandum 
of  August  20,  1917,  which  is  attached  hereto  and  make  a  part 
hereof. 

This  new  method  of  handling  grievances  in  shipyards  may  well  be 
compared  witli  the  directions  for  the  San  Francisco  District, 
which  read : 

Such  grievances  as  do  not  relate  to  the  subject  of  hours  or 
wages  covered  by  this  agreement,  which  may  arise  in  any  shop, 
shall  be  given  consideration  as  follows :  Upon  complaint  being 
made  by  either  party  to  this  agreement  in  writing,  the  duly  author- 
ized representative  of  the  firm  and  the  business  representative  of 
the  union,  or  the  representative  of  the  Iron  Trades  Council,  who 
may  be  elected  to  represent  the  union,  shall  immediately  proceed 
to  the  shop  or  shops  where  such  grievances  exist  and  endeavor  to 
mutually  settle  the  same. 

Negotiations  in  the  San  Francisco  District  were  thus  left,  by  joint 
agreement,   to  be  carried   on   directly  between   employers   and   union 

116 


' 


•      "A 


>        » 


1 


officials.  The  same  was  true  in  the  Seattle  District.  In  the  Los 
Angeles  District  shop  committees  were  established  in  some  plants,  but 
were  soon  controlled  largely  by  the  unions. 

Provisions  identical  to  those  in  the  Portland  District  w^ere 
embodied  in  the  Decision  for  the  South  Atlantic  and  Gulf  Shipyards, 
March  4,  1918.     There  was  added,  however,  a  third  paragraph : 

Any  committeeman  appointed  hereunder  w^ho  shall  be  found 
to  have  been  discharged  without  just  or  sufficient  cause  after  the 
investigation  in  the  manner  herein  provided  for  the  adjustment  of 
grievances  shall  be  reinstated  w^ith  full  pay  for  all  time  lost. 

The  same  provisions  w^ere  included  in  the  Decision  for  the  North 
Atlantic  and  Hudson  River  Shipyards,  April  6,  1918. 

In  the  Decision  for  the  Shipyards  about  the  Great  Lakes,  April 
19,  1918,  the  shop  committee  sections  were  prefaced  as  follows: 

The     shipyard     owners     are     directed    to     co-operate     with 

employees  in  making  effective  the  following  rules  in  reference  to 

machinery  for  the  settlement  of  industrial  disputes. 

In  the  Decision  for  Delaware  River  and  Baltimore  Shipyards, 
February  14,  1918,  corrected  and  extended  April  6,  1918,  no  provisions 
for  shop  committees  appear. 

The  original  inclusion  of  the  shop  committee  provision  for  the 
Columbia  River  District  was  due  to  the  situation  in  Portland,  where 
anti-union  policies  had  long  been  pursued  by  most  of  the  shipbuilding 
companies  and  some  compromise  plan  between  anti-union  and  outright 
union  was  necessary.^ 

On  October  24,  1918,  the  Macy  Board  issued  two  decisions,^  "as 
to  wages,  hours,  and  other  conditions,"  w^hich  superseded  all  its 
previous  decisions.  One  of  these  new  decisions  was  for  the  Pacific 
Coast  Shipyards,  the  other  for  the  yards  along  the  Atlantic  and  Gulf 
coasts  and  the  Great  Lakes.  Section  IV  in  both  of  these  decisions 
reads  as  follows: 

Shop  Committees  for  the  Adjustment  of  Grievances — Ship- 
yard owners  not  parties  to  joint  agreements  with  the  labor  organi- 
zations of  their  respective  districts  are  directed  to  co-operate  with 
their  employees  in  making  effective  the  following  rules  in  refer- 
ence to  machinery  for  the  settlement  of  industrial  disputes;  pro- 
vided that  shipyards  having  in  operation  substantially  similar 
rules  may,  on  the  recommendation  of  the  district  examiner 
approved  by  the  Board,  be  permitted  to  continue  such  rules  in 
operation : 

1  Letter   of   H.    R.    Seager,    Secretary   of   the   Board,    September   9,    1918. 
» These   are   dated   October   1. 

117 


(1)  The  employees  of  each  craft  or  calling  in  a  shop  or  yard 
shall  have  the  right  to  select  three  of  their  number  to  represent 
them  as  members  of  a  shop  committee.     Each  member  of  this 
committee  shall  be  chosen  for  a  term  of  six  months  by  majority 
vote  through  secret  ballot,  in  such  manner  as  the  employees  may 
direct.     Vacancies  for  an  unexpired  term  shall  be  filled  by  ballot. 
Members  of  an  outgoing  committee  shall  be  eligible  for  re-election. 
The  chairman  of  each  shop  committee  shall  be  a  member  of  a 
joint  shop  committee.     The  joint  shop  committee  shall  by  ballot 
select  five  of  its  members  to  act  as  an  executive  committee  to  rep- 
resent it  in  conferences  with  the  superintendent  or  higher  officials 
of  the  company.     In  contested  cases,  the  district  examiner  shall 
decide  as  to  the  validity  of  the  election  of  a  shop  committee  and 
supervise    a    new    election    when    he    deems    such    new    election 
necessary. 

(2)    When  a  grievance  arises  it  shall   be  taken  up  by  the 
craft  or  laborers'  committee  with  the  foreman  or  general  foreman 
Failing  an  adjustment,  the  craft  or  laborers'  committee  may  then 
take  It  up  with  the  superintendent  and  may  call  in  the  assistance 
of  a  representative  chosen  by  the  committee  to  confer  over  the 
grievance  with  the  superintendent  or  the  higher  officials  of  the 
company.     If  the  grievance  concerns  more  than  one  craft   it  shall 
be  handled  through  the  joint  shop  committee,  first  with  the  super- 
intendent, and,  then  failing  a  settlement,  with  the  higher  officials 
of  the  company.     In  such  conference  with  the  superintendent  or 
higher  officials,  the  joint  shop  committee  shallhave  the  ri-ht  to 
call  in  the  assistance  of  a  representative  chosen  by  the  committee 
In  case  such  conference  fails  to  result  in  a  satisfactory  adjust- 
ment, the  grievance  shall  be  submitted  to  the  district  examiner. 
(3)    Any  committeeman  elected  in  accordance  with  the  pro- 
visions of  this  section,  who  shall  be  found  to  have  been  discharged 
without  just  or  sufficient   cause,  after  due  investigation   in  the 
manner  herein  provided   for  the  adjustment  of  grievances,  shall 
be  reinstated  with  full  pay  for  all  time  lost. 

These  two  decisions  cover  the  whole  country  and  give  the 
employees  of  any  shipyard  which  comes  under  the  authority  of  the 
Macy  Board  the  right  to  organize  shop  committees.  It  should  be  noted 
that  the  Macy  Board  decisions  grant  to  the  employees  of  "each  craft 
or  calling"  the  right  to  form  a  shop  committee,  and  that  the  employers 
are  directed"  to  co-operate  with  their  men  in  the  matter  Attention 
should  also  be  called  to  the  ''joint  shop  committee"  made  up  of  the 
chairmen  of  the  craft  committees.     This  "joint  shop  committee"  would 

118 


t 


more  properly  be  called  a  works  committee.  The  method  of  its  con- 
stitution was  adopted  in  deference  to  the  craft  lines  upon  which  unions 
are  organized.  Membership  on  the  works  committee  is  thus  based  on 
craft,  and  not  on  departmental  representation.^ 

Unfortunately  there  is  available  comparatively  little  information 
as  to  the  actual  operation  of  committees  in  shipyards.  Where  the 
proper  spirit  has  been  manifested  by  the  employer  and  the  unions  have 
not  been  too  aggressive,  the  committees  appear  to  have  been  successful^ 

In  the  Portland  (Oregon)  District  the  committees  for  a  time 
did  not  function  well.  The  reasons  for  this  failure  are  given  by  one 
familiar  with  the  situation  as  follows : 

(a)  Not  all  yards  have  definitely  constituted  committees  with 
regular  periods  of  meeting;  nor  are  all  crafts  within  the  yards  so 
organized. 

(b)  The  committees  do  not  consider  more  than  20  per  cent  of 
the  complaints  arising  under  the  Macy  Board  decisions.  The 
other  80  per  cent  are  taken  up  with  the  examiner  by  either  the 
business  agents  of  the  various  unions  or  by  the  direct  appeal  of 
the  interested  parties. 

(f)  Jealousy  of  the  local  unions.  Unions  do  not  wish  the 
committees  to  usurp  their  functions.  They  evidently  do  not  want 
industries  to  be  organized  vertically,  but  rather  transversely. 

(d)  Indifference  of  workers.  The  men  are  busy  and  are 
earning  good  wages  and  do  not  take  very  much  interest  in  organiz- 
ing these  committees. 

In  the  Great  Lakes  District  it  was  found  that  the  committees  were 
not  functioning  well,  because  disputes,  instead  of  going  through  com- 
mittee channels  as  they  should,  were  taken  directly  up  to  the  district 
examiner  representing  the  Macy  Board  and  the  Emergency  Fleet  Cor- 
poration. To  remedy  this  situation,  it  was  decided  that  both  men  and 
employers  should  be  encouraged  to  regard  the  committees  as  in  a  sense 
representative  of  government  interests,  in  that  they  are  a  part  of  the 
machinery  for  avoiding  or  settling  industrial  grievances  and  disputes 
which  would  otherwise  interfere  with  production  in  war  time.  The 
Board  on  November  1,  1918  accordingly  issued  the  following  "State- 
ment in  Reference  to  Shop  Committees."     It  applied  only  to  the  Great 

Lakes  District : 

In  interpretation  of  Section  IV  of  the  Decision  of  October 
24,  and  to  clear  up  certain  ambiguities  in  the  phrasing,  this  sup- 
plementary statement  for  the  guidance  of  joint  shop  committees 
is  issued :  ' 

»  The  committee  system  in  the  Sparrows  Point  (Md.)  plant  of  the  Bethlehem  Ship- 
building Corporation — a  system  which  has  tentatively  been  accepted  by  the  Macy  Board  as 
"substantially  similar"  to  the  system  prescribed  in  its  Decisions — is  based  upon  departmental 
and   not   on   craft   lines. 

*  See,  for  illustration,  the  committees  in  the  Mobile  Shipbuilding  Company's  plant 
at    Mobile,   Alabama, —  Appendix    V,    pp.    212  214. 

119 


(1)  The  joint  shop  committee  is  to  be  guided  in  its  work  by 
the  knowledge  that  it  is  acting  in  the  interest  of  the  government 
and  that  it  i-,  next  to  the  examiner,  the  principal  medium  for  the 
adjustment  of  all  grievances  presented  by  either  the  men  or  the 
company.  It  should  deal  with  grievances  as  a  judicial  body  and 
is  to  do  its  utmost  to  effect  a  settlement  in  accordance  with  the 
provisions  of  the  award  without  recourse  to  the  examiner,  who  is 
to  be  called  in  only  as  a  last  resort.  It  is  understood  that  it  is  to 
approach  all  (juestions  in  dispute  in  a  non-partisan  manner  and 
give  the  government  the  l)enefit  of  its  fair  minded  judgment.  It  is 
to  render  decisions  that  will  be  considered  fair  and  impartial. 

(2)  The  executive  committee  is  intended  to  assist  the  joint 
shop  committee  in  the  transaction  of  its  business,  but  may  be  dis- 
pensed with  if  in  the  judgment  of  the  examiner  and  the  joint 
shop  committee  it  serves  no  useful  purpose. 

(3)  Where  joint  shop  committees  are  established  and  operate 
under  the  guidance  and  supervision  of  the  examiner,  a  craft  com- 
mittee should  not  call  in  an  outside  representative  until  after  the 
joint  shop  conmiittee  fails  to  effect  a  satisfactory  settlement. 

(4)  The  examiner  must  see  to  it  that  grievances  referred  to 
the  joint  shop  committee  are  promptly  and  efficiently  dealt  with. 
He  is,  therefore,  authorized  to  approve  any  reasonable  plan  by 
which  the  joint. shop  committee  may  meet  under  proper  condi- 
tions and  at  regular  intervals. 

(5)  The  joint  shop  committee  should  impress  upon  the  men 
their  obligation  to  the  Government  to  make  their  maximum  con- 
tribution to  the  production  of  ships.  Any  failure  on  their  part  to 
work  on  Saturday  afternoons  or  the  prescribed  number  of  hours 
on  other  days  or  to  comply  with  other  rules  laid  down  by  the  Ship- 
building Labor  Adjustment  Board  or  by  the  District  Manager  of 
the  Fleet  Corporation  designed  to  secure  maximum  ship  pro- 
duction, must  be  condemned  as  evidence  of  an  unwillingness  on 
their  part  to  play  fair  with  the  Government  and  carry  out  the 
implied  ol)ligation  resulting  from  acceptance  of  the  benefits  of  the 
machinery  created  liy  the  Government. 

The  committees  in  most  of  the  Great  Lakes  District  shipyards 
are  now  (December.  1918)  functioning  fairly  well.  Of  the  twenty-two 
companies  on  the  Great  Lakes,  fifteen  have  established  committees. 
Of  these  fifteen,  eleven  report  that  the  committees  are  functioning 
"fairly  well/'  two  report  "average,"  and  one  reports  "poor."  One  large 
company  operating  a  number  of  yards  reports  that  committees  are  not 
functioning  in  all  departments.  The  partial  failure  of  the  committees 
to  function  properly  is  explained  by  the  fact  that  "about  everything 

120 


•  ■  t 


i 


. 


a- 


<  *> 


covered  by  the  initial  (Macv  Board)  award  was  promptly  conceded. 
Therefore,  there  was  little,  if  anything,  left  for  shop  committees  to  do 
in  departments  working  exclusively  on  an  hourly  rate  basis.  1  he  com- 
mittee in  the  riveting  department  is  quite  active  on  account  of  the 
various  items  of  piece-work  ratings  which  required  adjustment  with 
change  of  type  or  arrangement  of  values."  In  another  yard  seven- 
teen craft  committees  were  elected.  This  made  the  joint  shop  com- 
mittee too  large  and  it  was  subsequently  reduced  to  an  executive  com- 
mittee   of    five,   which    is   handling   all   grievances    in   a   satisfactory 

manner.  r  r     ^ 

In  the  South  Atlantic  and  East  Gulf  Coast  shipyards,  out  of  forty- 
two  reporting  twenty-four  report  committees  functioning,  although 
some  have  been  but  recently  organized,  two  report  committees  function- 
ing "poorly"  and  three  report  committees  ''not  functionmg."  Informa- 
tion is  not  at  hand  with  regard  to  the  actual  working  of  these  commit- 
tees In  the  Gulf  District,  comprising  the  Louisiana  and  Texas  Coast, 
nine  shipyards  report  committees,  all  of  which  seem  to  be  working  in 
satisfactory  co-operation  with  the  company  officials. 

In  the  North  Atlantic  District  the  committee  plan  has  but  recently 
begun  to  make  headway.  Two  plants  in  Portland  have  committees 
functioning  "fairlv  well."  A  plant  in  Connecticut  has  a  shop  com- 
mittee composed  of  men  of  unusual  intelligence,  and  therefore  naturally 
functions  well.  In  the  steel  shipyards  of  New  England  the  committees 
seem  to  give  promise  of  excellent  work.  The  committee  plan  estab- 
lished in  the  Bethlehem  Shipbuilding  Corporation's  plant  at  Sparrows 
Point,  Md.,  is  given  in  Appendix  V. 

Obviouslv  a  decision  of  a  government  board,  unless  it  applies  to  a 
specific  situation,  will  hardly  enter  into  details  as  to  the  manner  in 
which  an  award  is  to  be  carried  out.     Accordingly,  we  find  in  the  Macy 
Board's  decisions  no  directions  or  recommendations  with  regard  to 
time  and  place  of  meeting,  minutes,  referendum,  or  officers  other  than 
chairmen.     Nothing  is   said  as  to  whether  meetings  are  to  be  held 
within  plant  precincts  or  outside,  or  whether  the  men  are  to  meet  on 
companv's  time  or  their  own.    All  these  details  are  left  to  the  discre- 
tion of  the  District  Examiner.     So  far  as  information  is  available,  the 
referendum  and  minority  representation  have  not  been  tried  in  con- 
nection with  anv   shipyard   committee  under   Macy   Board  auspices. 
Payment  to  committee  members  for  time  spent  in  meetings  is  left  to 
the  decision  of  the  examiner.     In  one  district  pay  is  allowed  to  the 
extent  of  one  hour  a  week— the  man  getting  the  hourly  rate  of  his 
trade.-     In   another   district   the   examiner   contemplates   payment   of 
two  dollars  a  meeting  to  each  member. 

In  certain  instances,  as  has  been  the  case  also  with  committees  pre- 
scribed by  the  National  War  Labor  Board,  difficulties  with  regard  to 

121 


I 


elections  have  occurred.  In  some  cases  the  local  unions  elected  co-n- 
.mttee  members  at  their  own  meetings.  In  some  instances  the  Macy 
Board  has  overruled  such  election  and  directed  the  examiner  to  hold 
another  election  in  some  neutral  place,  in  which  all  workers,  whether 
union  or  non-union,  should  be  allowed  to  vote.  In  at  least  one 
mstance,  also,  the  Board  held  an  election  illegal  because  it  had  been  held 
m  the  company -s  office,  which  was  regarded  as  not  neutral.  Sometimes 
the  employees,  sometimes  the  unions,  have  attempted  to  control  the 
comnuttees,  but  it  is  felt  that  in  most  cases  fairly  representative  com- 
nuttees  have  been  secured. 

The  National  War  Labor  Board  has  provided  for  works  commit- 
tees m  at  least  thirteen  of  its  many  awards.'     The  War  Labor  Board 
has  m  general  given  more  detailed  attention  to  the  organization  and 
operation  of  works  committees  than  has  the  Macy  Board.     A  memo- 
randum on  election  of  committees,  which  indicates  how  carefully  the 
War  Labor  Board  has  considered  the  matter,  is  given  in  Appendix  VII. 
Other  boards  and  decisions-'Yh^v^  have  as  yet  been  no  shop  com- 
mittees set  up  by  the  National  Adjustment  Commission  (which  handles 
longshoremen  and  sailors  disputes).     The  chief  difficulty  here  is  the 
mobility  of  labor  and  the  fact  that  there  is  no  real  "shop  "     Mr   R   P 
Bass,  the  Chairman  of  the  Commission,  has  made  the  recommenda- 
tion, however,  that  port  or  harbor  committees  be  set  up.     Such  com- 
mittees would  be  somewhat  similar  to  the  elaborate  community  com- 
mittee set  up  at  Bridgeport  by  the  War  Labor  Board. 

No  shop  committees  have  been  set  up  by  the  Emergency  Con- 
^irwtion  Wage  Commission  which  handles  construction  work  for  the 
War  Department.  The  War  Department,  in  this  respect,  deals  only 
with  representatives  of  organized  labor,  preferably  the  Presidents  of 
the  International  Brotherhoods.  If  the  men  on  the  particular  con- 
struction work  are  not  organized,  the  War  Department  handles  the 
situation  Itself  on  the  basis  of  union  scales  and  conditions  in  the 
Vicinity. 

The    Saddlery    and    Harness    Commission    has    established    no 
committees. 

Professor  William  Z.  Ripley,  Administrator  of  Labor  Standards 
for  Army  Clothing,  Quartermaster's  Corps,  in  the  case  of  Wanamaker 
&  Brown.  Philadelphia,  May  23,  1918,  held  that  since  a  majority  of  the 
workers  were  union  members  and  a  partial  recognition  of  the  union  had 
already  been  accorded,  it  was  proper  to  direct  adjustment  of  disputes 
by  a  representative  of  the  firm  in  conference  with  a  representative  of 
the   Amalgamated   Garment   Workers'   Union.     However,   non-union 

*  See   Appendix   VII. 

1  79 


r 


workers  were  to  be  given  opportunity  either  to  elect  an  independent 
shop  chairman  or  to  authorize  the  firm  representative  to  speak  for 
them.  The  right  of  the  employer  to  employ  and  discharge  workers  for 
any  reasons  other  than  legitimate  union  activities  was  affirmed,  but  the 
Administrator  recommended  strongly  conferences  with  the  representa- 
tives of  the  workers  to  maintain  efficiency  and  discipline,  a  mutual 
spirit  of  accommodation,  a  recognition  of  the  right  of  the  employees 
to  have  some  voice  in  determining  the  conditions  of  work  and  of  the 
joint  interest  of  all  to  eliminate  friction  for  the  sake  of  highest 
efficiency. 

The  United  States  Railroad  Administration  in  General  Order 
No.  13,  issued  March  22,  1918,  ratified  the  method  of  adjusting  dis- 
putes already  in  practice,  with  provision  that  the  dispute  could  be  car- 
ried up  to  Railway  Board  of  Adjustment  No.  1 : 

Personal  grievances  or  controversies  arising  under  interpre- 
tation of  wage  agreements,  and  all  other  disputes  arising  between 
officials  of  a  railroad  and  its  employees,  covered  by  this  under- 
standing, will  be  handled  in  their  usual  manner  by  general  commit- 
tees of  the  employees  up  to  and  including  the  chief  operating 
officer  of  the  railroad  (or  some  one  officially  designated  by  him) 
when,  if  an  agreement  is  not  reached,  the  chairman  of  the  general 
committee  of  employees  may  refer  the  matter  to  the  chief  execu- 
.    tive  officer  of  the  organization  concerned,  and  if  the  contention  of 
the  employees'  committee  is  approved  by  such  executive  officer, 
then  the  chief  operating  officer  of  the  railroad  and  the  chief  execu- 
tive officer  of  the  organization  concerned  shall  refer  the  matter, 
with  all  supporting  papers,  to  the  Director  of  the  Division  of  Labor 
of  the  United  States  Railroad  Administration,  who  will  in  turn 
present  the  case  to  the  Railway  Board  of  Adjustment  No.  1,  which 
board  shall  promptly  hear  and  decide  the  case,  giving  due  notice 
to  the  chief  operating  officer  of  the  railroad  interested  and  to  the 
chief  executive  officer  of  the  organization  concerned  of  the  time 
for  hearing. 

No  matter  will  be  considered  by  the  Railway  Board  of  Adjust- 
ment No.  1  unless  officially  referred  to  it  in  the  manner  herein 
prescribed. 

A  similar  provision  was  made  in  General  Order  No.  29,  May  31, 
1918,  relative  to  Railway  Board  of  Adjustment  No.  2. 

The  awards  of  the  Ordnance  Department  provide  not  for  shop 
committees,  but  for  special  mediation  committees,  one  for  each  dispute, 
of  three  members,  representing  the  men,  the  employer,  and  the  Govern- 
ment, respectively.     The  only  exception  which  has  come  to  notice  is  an 

123 


award  relating  to  women  employees  in  the  case  of  the  United  States 
Cartridge  Company,  Lowell,  ^Mass. : 

•'In  harmony  with  the  decisions  of  the  War  Labor  Board  giv- 
ing employees  the  right  to  bargain  collectively,  arrangements 
should  be  made  at  once  whereby  female  employees  may  have 
means  for  bringing  grievances  and  other  causes  to  the  attention  of 
the  management  through  committees  of  their  own  selection." 

The  United  States  Fuel  Administration  announced  on  July  23, 
1918.  that  at  a  conference  between  the  Federal  Fuel  Administrator, 
Harry  A.  Garfield,  and  the  international  officials  of  the  United  Mine 
Workers  of  America,  a  complete  understanding  was  reached  with 
regard  to  jurisdiction  in  the  adjustment  of  labor  disputes.  The  Fuel 
Administrator  created  a  Bureau  of  Labor  to  which  all  matters  relating 
to  labor  controversies  were  to  be  referred  for  settlement.  In  the  state- 
ment of  principles  agreed  to  by  the  representatives  of  the  United  Mine 
Workers  of  America  and  the  Fuel  Administration,  the  following  sec- 
tion occurs : 

"On  the  basis  of  the  foregoing  understanding,  which  he 
regards  as  just  and  imperative  in  the  present  crisis,  the  United 
States  Fuel  Administrator  has  insisted  and  will  continue  to  insist 
that  any  adjustment  of  labor  questions  in  the  coal  mining  indus- 
try, whether  by  joint  agreement  between  operators  and  mine  work- 
ers or  by  agreements  severally  made  with  the  United  States  Fuel 
Administrator,  shall  embody  wherever  applicable  and  substantially 
the  principles,  provisions,  and  practices  laid  down  in  the  Maryland 
and  upper  Potomac  settlement  of  May  6,  1918,  and  recognize  the 
authority  of  the  International  Union  of  Mine  Workers  in  the 
organized  fields  and  their  jurisdiction  over  controversies  arising 
in  said  fields." 

The  Maryland  and  upper  Potomac  settlement  of  May  6,  1918,  to 
which  reference  is  made,  contains  a  provision  for  the  establishment 
and  recognition  of  mine  committees.  Mine  committees  shall  be  elected, 
and  the  management  shall  receive  such  committees  to  adjust  disputes 
which  the  superintendent  and  the  mine  foreman  and  the  employee  or 
employees  affected  are  unable  to  adjust.  In  case  it  is  impossible  thus 
to  reach  a  settlement,  the  dispute  shall  be  referred  to  an  umpire 
appointed  at  the  request  of  the  United  States  Fuel  Administrator,  who 
shall  have  the  right  to  review  the  appointment.  Members  of  commit- 
tees are  given  protection  in  the  discharge  of  their  duties.  The  right 
of  employees  to  meet  in  peaceful  assemblage  shall  not  be  interfered 
with  or  abridged. 

124 


aA» 


Thus  the  Government  in  the  coal  mining  industry  very  definitely 
recognized  the  place  of  workingmen's  committees  in  the  adjustment  of 
labor  disputes.' 

The  Loyal  Legion  of  Loggers  and  Lumberm en-^i^nt\on  should 
be  made  of  the  work  of  Colonel-now  Brigadier  General-Disque  m 
bringing  harmony  and  decent  working  conditions  mto  the  spruce 
loeeing  camps  of  the  Northwest.  Colonel  Disque,  as  head  of  Spruce 
Production  Division  of  the  Aircraft  Production  Board,  organized  the 
Loyal  Legion  of  Loggers  and  Lumbermen.  He  gathered  the  employ- 
ers then  the  workmen,  into  groups,  and  finally  secured  an  organiza- 
tion covering  the  entire  spruce  area  of  the  Northwest.  Joint  commit- 
tees of  employers'  and  employees'  representatives  were  appointed  in 
the  mills  and  camps;  then  district  committees  were  established  and 
finallv  a  Central  Council,  with  headquarters  at  Portland.     Appeals  on 

grievances  lie  through  the  local  committees  and  the  district  councils 

to  the  Central  Council. 

The  emplovees'  members  of  the  district  councils  were  elected  by 

the  men-  employers'  representatives  were  appointed  by  Colonel  Disque. 

Employers   and   emplovees  are  each   represented  by  three  members. 

These  six  elect  a  chairman,  who  is  a  member  of  the  Central  Council. 
What  had  been  accomplished  by  the  Loyal  Legion  of  Loggers  and 

Lumbermen  by  midsummer,  1918,  is  indicated  in  the  Legion's  Bulletin, 

No.  46: 

This    the  first  semi-annual  digest  of  the  accomplishments  of 

the  Loyal  Legion  of  Loggers  and  Lumbermen,  is  submitted  to  the 

■         members  with  a  view  to  visualizing  some  of  the  results  obtained 

through  their  loyalty  and  co-operation  with  the  War  Department. 

(1)  March  1,  the  eight-hour  day  was  inaugurated  in  the  camps 
and  mills  of  the  Northwest,  the  Loyal  Legion  being  one  of  the 
prominent  factors  in  this  movement. 

(2)  The  10-hour  wage  scale  for  eight  hours'  work  was  estab- 
lished and  so  graduated  that  every  member  now  receives  pay  com- 
mensurate with  the  work  he  is  doing. 

(3)  Elected  representatives  of  each  local  have  bee;i  called 
together  in  conferences  held  in  the  Coast  and  Inland  Empire 
divisions  These  conventions  have  afforded  the  members  an 
opportunitv  to  present  to  Colonel  Disque  their  ideas  and  sugges- 
tions pertaining  to  the  general  welfare  of  the  Legion. 

(4)  Your  headquarters  has  made  a  sanitation  survey  of  over 
90  camps  and  mills,  which  survey  has  resulted  in  the  publication 
of  a  pamphlet  on  camp  sanitation  and  construction.  These  booklets 

tSee   "Labor   Adjustment    and   the   Payment  .of   Bonuses   at    Coal   ^^i"",'"   ^g^g^^^^    ^'"*" 
Rureau   of   Labor   Statistics.  Monthly   Labor  Revxcw.   September,   1918,   pp.    186-188. 

125 


are  now  in  the  liands  of  every  oi)erator  with  tlie  rec(jmiiieiida- 
tion  that  the  hving  conditions  of  the  Northwest  logger  he  hrought 
to  the  new  standard  set  hy  these  experts  on  camp  hygiene. 
Already  some  350  locals  have  reported  sanitary  improvements 
made  upon  suggestions  from  this  office,  although  the  actual  work 
of  cleaning  up  has  been  under  way  for  less  than  three  months. 

(5)  There  has  been  established  a  welfare  department  that 
acts  as  a  clearing  house  for  complaints  and  questions  as  to  hours 
and  wages  and  interpretations  of  the  draft  laws  and  other  matters 
affecting  the  welfare  of  our  membership. 

(6)  Our  records  indicate  that  some  250  locals  have  installed 
reading  rooms,  libraries,  recreation  and  moving  picture  halls,  and 
other  healthful  facih"ties  for  improving  the  leisure  hours  of  the 
workmen  in  the  forests  of  Oregon,  Washington  and  Idaho. 

(7)  Fourteen  officers  and  125  enlisted  men  have  been  placed 
at  the  service  of  the  members  to  assist  them  in  developing  the 
objects  and  purposes  of  the  Legion.  That  something  is  being 
accomplished  is  best  indicated  in  the  fact  that  1,500  letters  a  week 
pass  through  the  Legion  headquarters'  office. 

(8)  Ninety  thousand  copies  of  a  monthly  magazine  are  being 
circulated  for  the  benefit  of  the  members  of  the  Legion,  and 
through  this  medium  you  are  kept  informed  upon  the  progress 
and  development  of  your  organization  as  well  as  upon  war  events 
of  current  interest. 

(9)  Four  complete  moving  picture  outfits  have  been  sent  into 
the  camps  and  mills  from  these  headquarters,  and  an  effort  is 
being  made  to  give  every  member  the  benefit  of  these  industrial 
war  pictures  showing  the  relative  value  of  your  work  to  the  Gov- 
ernment's war  activities  in  Europe. 

(10)  Strikes,  sedition,  and  sabotage,  which  were  rampant  in 
this  territory  before  the  advent  of  the  Loyal  Legion,  have  been 
practically  eliminated  through  the  patriotic  eflforts  of  the  110,000 
workmen  enrolled  under  its  banners. 

(11)  The  general  labor  turnover,  estimated  at  nearly  1,000 
per  cent  a  year,  has  been  substantially  reduced  as  a  result  of  an 
awakened  national  pride,  patriotism  and  interest  in  the  war  pro- 
gram of  the  Federal  administration.  Closer  co-operation  and  per- 
sonal relation  between  employer  and  employee  have  increased  the 
harvest  of  war  timber  in  the  Pacific  Northwest  some  500  per  cent 
during  the  last  six  months. 

(12)  Colonel  Disque  is  authority  for  the  statement  that  the 
cost  of  airplane  and  ship  material  to  the  allied  governments  has 
been  greatly  reduced  through  the  earnest  efforts  of  the  members 
of  this  organization. 

126 


f 


(13)  A  plan  of  education  in  new  methods  of  preventing  fires 
in  iorlsl  al'miUs  embraced  in  the  territory  of  the  Loyal  Leg.on 
has  been  put  into  effect.  ,        •     .u„ 

(14)  The  greatest  forward  step  is  still  to  be  taken  m  the 
immediate  future.  We  refer  to  the  complete  '-™°"-:"/^°^  "^^^J; 
ests  of  laboring  men  and  operators.  To  complete  this  m  a  manner 
fl  r  and  just  to  all,  the  laboring  men  must  be  represented  equally 

vhh  "pernors  in  ^11  deliberations.  This  will  be  accomplished  by 
creating  in  each  local,  district,  and  general  headquarters  a  councU 
the  Znbership  of   which  will  equally   represent  employer  and 

employee.  ^  ^^ 

These  councils  will  determine  all  problems  of  -ag'.s^  camp 
conditions,  hours  of  labor,  overtime,  etc.,  as  P-v.ded  for  mat 
of  regulations  which  will  be  made  up  by  the  headquarters  counc.L 
Co  Saint  and  discontent  have  made  way  ^or  co-operat,on  and 

appreciation,  and  it  may  be  said  in  all  «"^;'- f  "<^ ''■"*'^/"  ""' ^^d 
the  unqualified  success  which  has  crowned  the  efforts  of  Colonel 
D  sqTand  the  Spruce  Production  Division  and  attracted  -ch^ 
full  measure  of  national  commendation  and  approval  wa.  made 
ioLble  only  by  the  loyal  efforts  and  interest  of  the  members  m 
the  task  assigned  to  them  through  this  Legion, 

The  Loyal  Legion  exists  as  the  strongest  industrial  organiza- 
tion for  war  purposes  in  the  United  States.     It  has  accomplished 
more  in  six  months  than  any  other  agency  could  have  accom- 
plished in  a  like  number  of  years.     It  is,  therefore,  the  desire  of 
Sose  in  charge  to  impress  upon  the  members  the  "--  y  o    k^P" 
ing  constantly  in  mind  their  pledge   and  their   interest  in  this 
7ganization  and  its  objects  and  purposes.     We  request  that  you 
feel  free  to  communicate  with  these  headquarters  on  any  matter  of 
general   interest  to  the   Government  in  its  war  activities      Our 
offices  are  open  at  all  times  to  receive  you  and  any  matter  that  you 
may  take  up  in  writing  will  have  our  immediate  attention. 

By    direction   of   Colonel   Disque. 
M.  E.  Crumpacker,  Captain,  A.  S.,  M.  A., 
Officer  in  Charge.^ 
The  co-operative  management  plan  as  embodied  in  the  Legion  has 
been  highly  praised  by  the  workers,  the  employers,  and  the  press.    It  s 
cTeTr  that  it  bears  considerable  resemblance  to  the  system  of  councils 
recommended  bv  the  Whitley  Committee. 

It  is  too  earlv  and  conditions  in  the  immediate  future  are  too 
uncertain  to  sav  whether  the  semi-compulsory  installation  of  works 
"mmittees  under  the  awards  of  the  various  war  labor  adjustment 

^American    Lumberman,    August    24.    1918,    pp.    42,    61. 

127 


boards  will  have  apprt'cialjJc  effect  either  to  quicken  or  retard  the  move- 
ment   toward   co-operative   management    in   this   country.     Much   will 
depend   upon   the  temper  of  employers,  who  have   undoubtedly  been 
restive    under    government    control    of    industrial    relations    and    of 
employees,  who  will  be  restive  during  the  period  of  withdrawal  of  gov- 
ernmental  control   and   falling  wages.     If   employers  and  employees 
have  found  that  on  the  whole  the  committees  formed  under  the  pressure 
of  war  conditions  have  brought  them  nearer  together  and  contributed 
to  mutual  understanding,  good  sense  would  dictate  the  continuance  and 
improvement  of  the  committee  systems  established.     The  conflict  atti- 
tude, however,  w^ill  not  easily  be  subordinated,  and  the  only  form  of 
compulsion  that  will  keep  to  its  subordination  will  be  public  opinion. 
In  so  far  as  the  adjustment  boards'  awards  have  carried  public  opinion 
with  them,  an  instant  to]:>pling  over  of  the  committees  and  a  return  to 
the  old  conditions  would  be  looked  upon  by  the  public  with  disfavor 
and  would  be  a  matter  for  regret. 

It  should  be  pointed  out  that  many  of  these  awards  have  been 
made  at  the  time  of  great  industrial  unrest,  and  that  the  committees  set 
up  in  many  instances  are  strictly  grievance  committees  and  nothing 
more.  In  fact,  it  may  be  said  in  general  that  the  committees  formed 
under  the  direction  of  the  various  government  awards  are  not  in  the 
same  class  with  works'  committees  voluntarily  set  up.  They  lie  on  the 
border  line  between  genuine  positive  co-operative  management  and 
devices  for  compulsory  conciliation  (if  the  phrase  may  be  allowed). 
This  being  true,  their  future  is  doubtful,  but  it  is  to  be  hoped  that  they 
will  nevertheless  pave  the  way  for  permanent  committee  systems. 
They  will  at  least  have  familiarized  both  employers  and  employees  with 
the  committee  idea  to  some  extent. 

Works  committees  in  American  industrial  plants— When  we  turn 
to  American  experience  with  voluntarily  organized  committees,  we  find 
a  few.  but  only  a  few,  clear  cut  examples  which  throw  light  upon  the 
proper  organization  and  the  successful  functioning  of  co-operative 
management  plans.  No  exhaustive  investigation  has  been  attempted ; 
no  questionnaire  has  been  sent  out.  Several  scores  of  letters  of 
inquiry,  however,  were  addressed  to  industrial  f^rms,  selected  at 
random.  Extracts  from  the  more  significant  replies  are  given  in 
Appendix  V.  Special  attention  is  called  to  the  plans  in  operation  in 
the  following  firms : 

American  Rolling  Mills  Company,  The  Browning  Company, 
Hart  SchafTner  &  Marx,  The  Irving-Pitt  Manufacturing  Com- 
pany. The  Joseph  &  Feiss  Company— Clothcra ft  Shops,  The 
William  Filene's  Sons  Company.  The  Leeds  &  Xorthup  Company, 
Mobile    Shipbuilding    Company.    Proctor    &    Gamble    Company,' 

128 


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\ 


/ 


r 


Standard  Oil  Company,  William  DeMuth  &  Co.,  Colorado  Fuel 
and  Iron  Company,  Midvale  Steel  and  Ordnance  Company,  Bethle- 
hem Shipbuilding  Corporation,  Bethlehem  Steel  Company. 

A  list  of  personal  opinions  both  favorable  and  unfavorable  on  the 
part  of  firms  wdiich  have  not  instituted  any  form  of  committee  system 
is  also  given.  In  general  it  may  be  said  that  the  companies  which  have 
committee  systems  are  favorably  disposed  and  some  which  do  not  have 
them  are  seriously  contemplating  their  establishment.  Many  other 
firms  evince  a  desire  to  know  something  about  the  works  committee 
idea.  In  a  few  cases  hostility  to  the  idea  is  expressed  on  the  ground 
that  it  involves  collective  bargaining  and  recognition  of  ''outside 
influences."  There  are  other  cases  in  which  the  company  has  recog- 
nized the  unions,  bargained  collectively,  and  established  a  committee 
system  not  unlike  that  recommended  by  the  Whitley  Committee.  In 
this  latter  class  clearly  belongs  the  elaborate  system  in  operation  in  the 
plant  of  Hart,  Schaffner  &  Marx,  Chicago.  A  similar  very  successful 
system,  not  involving  questions  relating  to  union  organization,  how- 
ever, is  that  of  the  William  Filene's  Sons  Company,  Boston. 

Size  of  plant  in  relation  to  committee  system — The  elaborate  indus- 
trial representation  systems,  set  up  in  large  plants  like  those  of  the 
Standard  Oil  Company,  the  Midvale  Steel  and  Ordnance  Company,  the 
Colorado  Fuel  and  Iron  Company,  and  the  Bethlehem  Steel  Corpora- 
tion, while  of  high  interest,  carry  for  industry  at  large  no  greater 
information  and  lesson  than  do  the  committees  organized  in  smaller 
concerns.  Committees  can  be  found  in  this  country  in  firms  of  all 
sizes. 

Size  is  a  matter  of  importance  in  determining  the  desirability  or 
necessity  of  organizing  works  committees.  The  larger  the  plant  the 
greater  the  need  for  committees  and  the  more  help  they  will  be  in 
securing  understanding  and  co-operation  between  men  and  manage- 
ment. In  small  plants  where  the  manager  can  know  by  name  and  per- 
haps have  a  personal  touch  with  every  workman,  the  need  is  much 
less.  Such  managers  are  almost  sure  to  take  the  position  that  they  do 
not  need  committees.  Yet  it  is  not  only  persons  who  are  strangers  to 
one  another  who  can  accomplish  by  collective  discussion  and  repre- 
sentative committee  action  what  they  could  not  individually,  but 
friends  and  acquaintances  as  well.  The  ancient  folk-moot  was  not  an 
association  of  strangers,  nor  were  the  wise  men  who  circled  around  the 
tribal  council  fire  known  to  one  another  only  by  number.  If  the  man- 
ager of  a  small  plant  can  meet  his  men  individually  in  a  man-to-man, 
human  w-ay,  there  is  every  reason  to  think  that  he  could  turn  this 
human  touch  to  collective  account  through  friendly  discussion  and 
planning  around   a   joint  committee  table.     Even  in  the  small   shop 

129 


committee  action  "may  help  to  bring  to  light  difficulties,  needs,  feelings, 
and  defects  which  might  otherwise  have  remained  concealed."^  The  fact 
remains,  however,  that  in  large  plants,  with  thousands  of  employees, 
where  personal  touch  between  management  and  individual  workmen  is 
impossible,  works  committees  constitute  the  necessary  machinery  for 
the  establishment  and  maintenance  of  the  co-operative  attitude. 

A  perusal  of  the  Appendix  will  show  also  that  committees  in 
American  firms  are  of  very  diverse  type  and  organization.  A  wide 
range  of  function  is  also  represented,  although  for  the  most  part 
American  committee  functions  are  as  yet  limited  to  the  consideration 
and  settlement  of  grievances.  There  is  much  indication,  however,  that 
as  time  goes  on  the  function  of  committees  in  this  country  will  be 
extended  and  much  more  definitely  defined. 

No  good  purpose  would  be  served  by  an  attempt  at  an  extended 
analysis  of  American  experiences  as  shown  in  these  letters.  This 
should  await  fuller  developments  and  a  more  careful  inquiry  than  it  has 
been  possible  to  make  at  the  present  time. 

Many  letters  were  received  which  show  that  the  writers  did  not 
have  an  adequate  conception  of  the  meaning  of  the  term  ''shop  com- 
mittee" or  "works  committee"  and  had  given  little  or  no  thought  to 
co-operative  management. 

In  the  light  of  English  experience  and  of  the  favorable  results 
which  have  been  obtained  with  works  committees  in  some  American 
establishments,  is  the  works  committee  plan  likely  to  prove  capable 
of  wide  application  in  the  United  States?  Undoubtedly  it  will 
encounter  difficulties  here  greater  than  those  in  England.  Employers' 
attitude  is  probably  not  so  favorable  here.  A  still  greater  difficulty, 
however,  may  be  found  in  the  task  of  harmonizing  works  committees 
with  union  ideals,  demands,  and  organization. 

Relation  of  works  committees  to  trade  unions— It  has  been  sug- 
gested a  number  of  times  that  the  Whitley  Committee  proposals  for 
works  committees  and  industrial  councils  have  been  made  primarily 
for  industries  in  which  trade  unions  and  employers*  associations  have 
already  attained  to  a  high  degree  of  organization.  While  the  Whitley 
Committee,  in  its  second  report,  made  recommendations  for  unor- 
ganized and  partially  organized  industries,  those  recommendations 
mvolved  a  certain  amount  of  government  control  and  co-operation 
through  the  Board  of  Trade,  and  the  Government  refused  to  adopt 
them.  It  has  been  noted,  also,  that  the  mental  attitude  of  both  labor 
and  capital  is  different— less  hostile,  less  obstinate,  less  pugnacious— 
than  in  this  country;  and  that  American  industry  is  by  no  means  so 
highly  organized,  either  on  the  part  of  the  workers  or  on  that  of 
employers,  as  is  English  industry. 

*  Works   Committees,   p.    44. 

130 


^ 


i  i 


* 


V 


Problems  of  works  committees  in  non-union  plants— These  two 
facts,  the  antagonism  between  •  capital  and  labor,  and  deficiencies  in 
organization,  suggest  some  difficult  questions.     Will  works  committees 
be  beneficial  in  non-union  plants?     If  so,  from  what  points  of  view? 
When  instituted   in  non-union  plants,  will  they  be  regarded  by  the 
management  as  a  bulwark  against  the  "outside  interference"  of  the 
unions,  and  so  used ;  or  will  they  produce  a  better  understanding  on 
both  sides,  such  as  may  pave  the  way  to  efficient  and  orderly  organiza- 
tion of  the  industry  into  trade  unions  and  employers'  associations^ 
When  introduced  into  union  establishments  will  they  supplant  the  union 
shop  committee  (where  one  exists)  and  trench  upon  the  powers  of  the 
business  agent;  or  will  they  be  built  up  on  the  union  nucleus  and 
offer  the  broad-minded  and  intelligent  business  agent  greater  oppor- 
tunities for  constructive  work  than  he  now  has  ? 

These  pages   have   advocated   frankness   between   employer   and 
employee.     It  is  but  fair  that  they  be  equally  frank  with  the  reader   be 
he  employer   or  workman.     Frank   facing  of   the   issue   compels  'the 
admission  that  the  employer  who  is  thoroughly  opposed  to  organized 
labor  will  see  in  works  committees  one  of  two  things:  either  an  oppor- 
tunity to  "get  right"  with  his  own  men  and  organize  his  plant  in  such 
a  way  that  the  unions  will  have  no  attraction  for  them,  or  a  device 
being  advocated  by  union  sympathizers  to  get  the  nose  of  the  camel 
into  the  tent,  whereupon  the  whole  program  of  unionism  will  follow 
On  the  other  hand,  organized  labor  officials  will  be  suspicious  of  any 
committee  plan  that  does  not  look  forward,  if  not  to  out-and-out  union 
committees,  at  least  to  close  co-operation  with  the  unions,  and  anv 
committee  plan  that  bears  the  earmarks  of  being  set  up  to  defeat  the 
organization  of  the  establishment  by  the  unions  will  be  condemned  at 
once. 

Conflict  of  opinion  -aith  regard  to  non-union  committees— Of  all 
this  there  is  sufficient  evidence.  The  officials  of  one  large  company, 
which  has  instituted  a  well-known  conciliation  plan,  do  not  hesitate  to 
say  that  it  is  working  satisfactorily,  while  the  trade  union  officials 
of  the  region  condemn  it. 

"You  mention  co-operative  management,"  says  one  union 
official,  there  is  none  of  it.  It  is  a  plan  of  coercion,  an  excuse 
to  intimidate  and  to  hoodwink  the  public,  and  the  officials  are 
always  the  sole  judge  of  any  grievance  a  man  might  have,  whether 

"tiaginary  or  not I  am  sure  organized  labor  of  this 

region  still  considers  the  plan  as  a  dual  organization,  a  sort  of 
organization  launched  to  replace  a  bono  fide  organization." 
This  official  encloses  a  diagram  showing  on  the  one  hand  the  ave- 
nues of  appeal  under  the  company's  plan,  by  which  men  with  grievances 

131 


must  make  appeal  in  person  or  through  their  representative,  who  must 
be  equipped  with  the  abiHty  to  combat  with  the  highly  trained  officials 
of  the  company,  and  on  the  other  hand,  what  would  be  the  course  of 
appeals  under  the  unions'  organization  through  union  officers  ''who  no 
doubt  are  more  competent  to  combat  with  the  different  officials  of  the 
company."     Another  high  union  official  says: 

It  is,  in  our  judgment,  paternalistic  in  its  operation,  and 
denies  to  the  employees  that  independence  of  action  which  they 
must  have  if  perfect  satisfaction  and  co-operation  are  to  prevail. 

The  machinery  by  which  the Company's  plan  is  put  into 

effect  is  in  the  hands  of  the  corporation  itself.'    ....     I  am 
reliably  informed  by  our  representatives     ....     that  much 

dissatisfaction  prevails  among  the  men  employed and  that 

very  little  interest  is  taken  by  them  in  the  plan  of  co-operation.   We 
claim  that  it  is  not  satisfactory  because  it  does  not  give  the  men 
justice.     In  the  first  place,  the  plan  is  headed  by  the  president  of 
the  company.    He  is  the  sole  dictator,  he  says  what  must  be  done; 
or  in  other  words  we  claim  there  is  no  change  in  the  system  of 
bargaining  as  between  the  men  and  the  company,  except  it  was  not 
in  writing  before  and  is  now.     Of  course  they  have  their  commit- 
tees now  and  did  not  before,  but  to  our  minds,  and  I  am  posi- 
tive I  can  prove  it.  the  committees  are  powerless.     I  further  want 
to  state  a  thing  that  happened  when  this  thing  was  first  put  into 
operation.     The    company   allowed   the   members   to   vote   as   to 
whether  they  would  accept  said  plan  or  not.     At  one  plant 
the  men  voted  three  times  on  the  plan,  and  the  first  two  times 
they  rejected  it.     The  third  time  they  were  given  a  space  of  time 
to  think  it  over,  and   during  that  space  the  company  got  busy 
through  their  superintendent  and  boss  and  told  the  men  they  had 
better  vote  to  accept  the  plan,  because  if  they  didn't  the  company 
would  shut  down.    The  results  would  have  been  in  this  place  that, 
as  most  of  the  men  own  their  property,  they  would  lose  all  they 
had.     The  result  was  that  through  this  kind  of  domination  the 
men  accepted  the  will  of  the  company.     I  do  believe  this  company 

would  have  made  good  their  threat Of  course  the 

company  claims  their  plan  is  a  success,  which  it  is  to  them.  As 
the  employee  has  found  out  he  cannot  get  justice,  and  because  of 
that  fact  he  will  not  take  his  troubles  up  under  that  plan.  The 
men  at  the  present  time  consider  their  patriotism  above  quarrelling 
over  that  plan,  but  I  predict  that  just  as  soon  as  the  war  is  over 
you  will  hear  that  the  men  are  rebelling  against  that  plan. 

I  could  sit  and  write  for  days  as  to  what  organized  labor 
thinks  of  the  plan,  but  I  consider  it  enough  to  say  that  organized 
labor  will  fight  any  autocratic  plan,  as  we  are  for  Democracy, 

132 


*   W        e 


V 


pure  and  simple.  The  plan  is  not  democratic  because  it  was 
drawn  up  by  the  interests  and  was  afterwards  forced  upon  the 
men. 

The  President  of  the  Company  on  the  other  hand  writes: 

I  know  that  I  can  safely  say  that  from  the  standpoint  of 
employees,  as  well  as  the  officers  of  the  Company,  it  (the  plan) 
is  stronger  today  and  regarded  with  much  more  favor  than  at  any 
time  in  the  past;  indeed,  employees  by  the  score  have  expressed 
themselves  to  myself  and  other  officers  of  the  Company  as  feeling 
that  it  has  established  and  insures  a  more  intimate  and  demo- 
cratic relation  between  employer  and  workman  than  in  their 
judgment  existed  any  place  else,  or  than  they  had  thought  could 
be  possible. 

I  think  the  success  of  the  plan  has  been  due  largely  to  the 
fact  that  we  have  continuously  encouraged  and  recognized  the 
committees  provided  for  in  the  plan,  not  only  in  connection  with 
conciliating  differences  but  in  improving  the  general  working  and 
living  conditions  at  the  places  of  employment. 

These  opinions  are  not  here  reproduced  with  the  idea  of  judging 
the  case  in  any  way  whatever,  but  merely  to  show  what  the  attitudes 
are  which  the  movement  for  co-operative  management  must  expect  to 
encounter. 

There  is  clear  indication  that  some  of  the  committee  plans  estab- 
lished in  this  country  have  been  set  up  with  the  intention  of  forestalling 
any  effort  toward  union  organization  of  the  plant.    This  does  not  mean 
that  the  plans  will  not  be  successful,  even  to  the  point  of  leading  event- 
ually to  general  organization  of  the  industry  along  the  lines  of  the 
Whitley  recommendations.     The  result  will  depend  very  largely  upon 
the  degree  to  which  real  democracy  prevails— that  is,  to  the  extent 
that  the  invisible  hand  of  company  control  is  removed  from  the  com- 
mittees-and  upon  the  company's  willingness  to  treat  squarely  and 
frankly  with  the  men.    Above  all,  the  company  must  avoid  discrimina- 
tion against  union  men,  and  will  do  well  to  avoid  even  the  appearance 
of  It.    One  ambitious  works  council  plan  recently  organized  is  already 
at  present  writing,  perilously  near  the  rocks.     The  union  employees 
elected  most  of  the  members  of  the  committees.    Soon  after,  the  com- 
pany  laid  off  a  thousand  men  in  one  of  its  plants,  because  of  the  closing 
of  the  war.     A  large  proportion  of  the  men  released  are  said  to  be 
union  members.    The  unions  are  now  charging  that  the  company  seeks 
to  victimize  the  union  men  because  they  are  in  a  large  majority  on  the 
committees. 

It  is  evident  that  the  committee  plan  has  to  make  its  way  as  best 
It  can  against  the  current  of  special  interests  on  both  sides  and  the 

133 


deplorable   lack   of   confidence   which   the   industrial   history   of   our 
country  generated. 

If  we  could  for  the  moment  forget  the  issues  raised  by  unionism 
and  anti-unionism,  and  look  at  the  situation  in  a  single  plant  taken  by 
itself,  we  could  pass  judgment  on  the  committee  plan  by  itself,  apart 
from  the  confusing  issues  and  conditions  which  now  beset  it.  '  From 
English  experience,  from  the  experience  of  certain  American  firms 
which  have  had  works  committees  for  various  periods  of  time  and 
from  our  knowledge  of  industrial  phychology,  we  cannot  but  conclude 
that  the  committee  plan  represents  an  essential  step  toward  industrial 
democracy  and  toward  a  more  solidly  founded  industrial  peace  and 
efficiency  than  we  now  have,  so  far  as  the  industrial  plant  is  concerned. 
This,  it  may  be  said  in  passing,  seems  to  be  the  growing  opinion  in 
both  England  and  America. 

Now,  if  a  non-union  plant  establishes  a  system  of  committees,  and 
the  system  is  successful,  as  just  noted,  what  eflfect  will  it  probably  have 
on  organized  labor  and  the  probability  of  the  future  establishment  of 
national  joint  industrial  councils  of  employers*  associations  and  trade 
unions  in  the  industry?     If  the  committees  are  used  to  keep  out  the 
unions,    the    unions    will    watch    them    with    an    eagle    eye,    and    the 
employees  will  have  an  under-current  of  distrust.     If  the  company 
plays    perfectly    square— paying   the   union    scale,    giving   union   con- 
ditions of  work,  allowing  the  committees  real  freedom  and  responsi- 
bility within  their  sphere,  the  plan  may  have  continued  success  at  the 
cost  of  preventing  for  the  time  being  the  organization  of  the  whole 
industry.     But  gradually  all  parties  concerned  will  lose  their  conflict- 
attitude,  the  co-operative  or  collective  tendency  will  broaden  to  include 
both  employees  and  employer,  and  the  way  open  easily  to  the  extension 
of  organization  and  peaceful  collective  bargaining  to  the  whole  indus- 
try, in  a  system  of  works  committees  and  industrial  councils  along  the 
lines   recommended   by  the   Whitley   Committee.     Thus  ^t  the   best, 
works  committees  in  non-union  plants  may  pave  the  way  to  under- 
standing and  co-operation  between  capital  and  organized  labor  both  of 
which  will  have  been  led  to  a  new  spirit  of  moderation  and  co-opera- 
tion.   At  the  worst,  committees  in  firms  now  dead  set  against  organized 
labor  cannot  make  the  spirit  much  worse  than  it  is.     If  the  unions 
are  excluded  anyhow,  they  will  do  well  to  let  the  men  in  the  plant  get 
what  they  can.     If  the  committee  system  fails  to  give  the  men  satis- 
faction they  will  in  the  long  run  turn  to  the  unions;  if  it  does  give 
satisfaction  we  may  hope  that  the  new  spirit  developed  will  lead  to  a 
wider  coHDperation. 

Desirability  of  huilding  on  a  union  basis  where  possible— Turning 
to  establishments  already  strongly,  if  not  wholly,  unionized,  it  should 
be  clear  that  any  committee  system  established  should  so  far  as  possible 

134 


> 


be  built  on  already  existing  union  basis-and  should  work  in  close 
co-operation  with  the  unions.  As  a  prominent  labor  official  has 
recently  remarked,  the  average  hand  worker  feels  safer  if  he  has  a 
representative  to  take  up  his  grievance  who  cannot  be  "reached"  or 
victimized  by  the  employer.  This  trustworthy  representative  he  at  pres- 
end  finds-under  favorable  conditions-in  the  business  agent  of  his 
union. 

The  business  agent-U  the  business  agent  is  not  too  pugnacious 
and  irreconcilable  in  temperament,  he  may  have  even  larger 
opportunity  for  usefulness  with  a  committee  than  without  one. 

The  business  agent  represents  his  union  in  all  the  plants  of  his 
district.  He  cannot  be  as  intimately  in  touch  with  conditions  in  each 
plant  as  a  committee  of  employees  in  'the  plant  would  be.  Moreover 
there  are  matters  of  detail  which  he  ought  to  be  freed  from  and  which 
can  better  be  attended  to  by  the  secretary  of  the  committee. 

Where  shop  and  works  committees  are  formed,  especially  if  based 
on  departmental  rather  than  craft  lines,  the  business  agent  will  have 
to  revise  his  methods  and  submit  to  some  modification  of  his  powers 
and  point  of  view.    He  will  still  remain  the  chief  medium  of  communi- 
cation between  the  rank  and  file  of  union  membership  and  the  union's 
local   but  the  men  themselves  will  settle  many  matters  within  the  shop 
which  before  went  to  the  union  office.     This  will  occasion  some  read 
justment  and  doubtless  some  misgiving  on  the  part  of  union  men,  but 
It  will  m  the  long  run  afiford  opportunity  for  the  union  officials  to  give 
more  time  to  the  larger  questions  of  their  trade,  and  relieve  them  ffom 
consideration  of  the  small  routine  which  can  be  handled  just  as  well   if 
not  better,  by  the  men  themselves  through  the  plant  committees 

The  British  Ministry  of  Labor  in  its  Report  on  works  committees 

TJlVTl:    ^^"^^^^^r"  ^^  ^'^  ^^^^^^^"^  -^^^^  '^^  — ^ttees  are 
to  bear  to  the  unions.    Naturally  the  questions  involved  in  England  are 

somewhat  diflferent  from  those  which  will  come  up  in  this  country 

yet  the  matter  is  so  important  that  the  conclusions  of  the  Enelish 

mvestigators  should  be  given  careful  attention.     The  Report  point' 

out  that  a  new  machinery  for  collective  bargaining  must  be  set  uo 

since  the  questions  for  which  this  machinery  is  requled  are  to  a  larg'e 

extent  peculiar  to  each  establishment,  and  collective  bargaining  if  it  is 

done  at  all,  must  be  carried  through  in  each  establishment.     At  the 

same  time  this  intra-plant  bargaining  must  be  in  accord  with  trade 

union  standards;  consequently  the  unions  will  gradually  develop  more 

positive  functions  within  the  works.^     It  is  to  be  expecfed  that  certain 

difficulties  will  be  encountered,  among  them  the  determination  of  what 

IS  a  general  and  what  a  special  matter,  conflict  of  authority  between 

*  See  Works  Committees,  pp.  37-42. 

135 


the  works  committee  and  the  local  union,  and  the  fact  that  men^bers 
of  the  works  committee  will   he  responsible  also  to  many  different 
unions.     The  question  of  the  right  of  trade  union  officials  to  attend 
works  committee  meetings  will  also  arise.     On  the  other  hand  cenain 
advantages  may  be  looked  for.     The  works  committee  should  prove  a 
valuable  asset  in  the  settlement  of  jurisdiction  disputes  and  in  general 
should  prove  an  avenue  through  which  more  friendly  and  firm  under- 
standing can  be  had  between  the  local  union  officials  and  the  employers. 
The  proof   of  a  pudding   is   in  the  eating  of  it.     If   American 
employers    see   that   co-operative   management,   where   introduced,   is 
actually  successful  in  securing  industrial  peace  and  promoting  efficiency 
and  if  organized  labor  finds  in  it  nothing  inimical  to  the  interests  of 
the  workmen,  it  will  have  a  large  development  here  as  well  as  abroad 
The  extracts  from  letters  given  in  Appendix  V  throw  a  little  light  on  the 
possibilities  of  success.    Thus  far  the  evidence  would  seem  to  indicate 
that  where  works  committees  have  been  given  a   fair  and  intelligent 
trial  they  have  fully  justified  the  experiment. 

The  results  of  a  well-organized  industrial  representation  plan 
which  "recognizes  the  unions,"  are  stated  by  a  well-known  firm  as 
follows : 

During  the  past  four  years,  this  company  has  concerned  itself . 
very  deeply  in  developing  its  relations  with  its  employees.  Labor 
disturbances  brought  keenly  to  our  attention  the  necessity  of 
having  the  good  will  of  the  workers  in  order  that  we  might 
maintain  and  preserve  the  good  will  of  our  customers  and  insure 
the  stability  of  our  business. 

We  are  glad  to  give  an  outline  of  our  experience,  believing  it 
has  yielded  results  in  the  form  of  certain  principles  of  policy  and 
action,  which  may  be  helpful  in  the  promotion  of  industrial  peace. 

In  making  this  statement  we  are  particularly  concerned  that 
the  formal  and  external  features  of  our  plan  shall  not  be  confused 
with  the  real  and  vital  substance  of  the  arrangements,  to  the 
neglect  of  the  spirit  ana  of  the  principles  which  are  in  reality 
responsible  for  whatever  progress  we  have  made. 

After  an  opportunity  of  several  years  to  studv  causes  and 
eflfects.  we  are  convinced  that  the  prime  source  of  difficulty  was  a 
lack  of  contact  and  understanding  between  our  people  and  our- 
selves. The  failure  to  adjust  petty  grievances  and  abuses  became 
the  cause  of  irritation  entirely  disproportionate  to  their  importance 
when  taken  singly,  but  which  in  accumulation  became  the  main 
ground  for  complaint. 

There  was  no  special  complaint  against  the  hours  of  work, 
which  were  fifty-four  per  week,  and  which  have  since  been  reduced 

136 


4> 


to  fifty-two.  The  physical  working  conditions  were  good  and  in 
fact  very  far  advanced  compared  with  the  general  conditions  in 
the  industry.  There  was  a  general  demand  for  higher  wages,  but 
we  have  always  looked  upon  this  as  an  accompanying  de  nand 
rather  than  a  first  cause  of  difficulty. 

The  unexpected  and  indirect  results  of  our  lal>or  policy  in 
increasing  the  efficiency,  reforming  the  conduct,  and  raising  the 
intelligence  of  the  executives  coming  into  contact  with  the  system 
have  been  as  profitable  and  satisfactory  as  the  direct  result,  i.  e., 
the  creation  of  harmony  and  good  will  on  the  part  of  the  people 
toward  the  company. 

A  summary  of  the  essentials  of  the  system  which  has  pro- 
duced such  gratifying  results  in  our  institution  would  include:  a 
labor  department,  responsible  for  industrial  peace  and  good  will 
of  the  employees,  thereby  of  necessity  fully  informed  as  to  their 
sentiments,  their  organizations,  and  really  representing  their 
interests  in  the  councils  of  the  company;  a  means  for  the  prompt 
and  final  settlement  of  all  disputes ;  a  conviction  in  the  minds  of 
the  employees  that  the  employer  is  fair  and  that  all  their  interests 
are  safeguarded;  constant  instruction  of  the  leaders  and  people 
in  the  principles  of  business  equity,  thus  gradually  evolving  a  code 
accepted  by  all  parties  in  interest,  serviceable  as  a  basis  for  adjust- 
ment of  all  difficulties ;  the  development  of  efficient  representation 
of  the  employees— honest,  painstaking,  dignified,  reasonable,  eager 
to  co-operate  in  maintaining  peace,  influential  with  their  people 
and  truly  representative  of  their  real  interests ;  a  friendly  policy 
toward  the  union  so  long  as  it  is  conducted  in  harmony  with  the 
ethical  principles  employed  in  the  business  and  an  uncompromising 
opposition  to  all  attempts  to  coerce  or  impose  upon  the  rights  of 
any  group  or  to  gain  an  unfair  advantage ;  and  a  management  that 
guarantees  every  man  full  compensation  for  his  efficiency  and 
prevents  anyone  receiving  anything  he  has  not  earned. 

Briefly  expressed,  it  is  simply  the  natural  and  healthy  relation 
which  usually  exists  between  the  small  employer  and  his  half 
dozen  workmen,  artificially  restored,  as  far  as  possible  in  a  large- 
scale  business  where  the  real  employer  is  a  considerable  group  of 
executives  managing  thousands  of  workers  according  to  certain 
established  principles  and  policies.^ 

The  conclusion  of  the  Ministry  of  Labor  investigators  with  regard 
to  the  results  of  English  experience  is  as  follows : 

F.6:rlrrn,:::rrr^l,^^^^^^^^^^  &      Marx      for    hearin.    before    the 

137 


In  more  than  one  works  the  summary  of  opinion  on  a  works 
committee — and  that  not  on  one  side  only,  but  on  both— has  been 
expressed  in  the  phrase,  "This  is  the  best  thing  that  has  ever 
happened  in  the  shop."  Such  a  summary  could  not  be  given  if 
experience  had  not  proved  that  a  works  committee  was  more  than 
a  piece  of  machinery  and  something  different  from  the  old  methods 
of  industrial  conciliation.  It  means  that  a  works  committee  is  felt 
to  be  something  vital  and  something  new — something  that  enlists 
the  workers  in  real  participation,  and  something  that  offers  fresh 
promise  for  the  future.^ 

*  Works   Committees,   p.   47. 


4. 


i 


Chapter  VI.    Conclusion 


138 


If  we  want  industrial  peace  we  can  have  it.  If  we  want  industrial 
efficiency  we  can  have  it.  But  we  must  want  these  things  enough  to 
pay  the  price;  and  the  price  is  that  we  shall  lay  aside  some  of  our  self 
assertive  individualism  and  some  of  our  class  consciousness,  get  rid 
of  our  conflict-attitudes  and  subordinate  our  pugnacious  instincts.  If 
we  want  democracy  in  industry  we  can  have  it — and  unless  much  of 
our  talk  about  democracy  is  to  be  open  to  the  charge  of  insincerity,  we 
must  desire  some  form  of  industrial  democracy — but  to  get  it  we  must 
develop  a  new  machinery  and  acquire  a  new  spirit. 

The  Whitley  Committee  recommendations  for  works  committees 
and  joint  standing  industrial  councils  show  a  possible  and  probably 
practical  method  by  which  industrial  self-government,  and  through  it 
an  approximation  to  justice  and  good  will  between  employer  and 
worker,  can  be  attained  without  a  transformation  of  the  whole  indus- 
trial and  social  system  and  the  introduction  of  some  type  of  socialism. 

We  have  indicated  how  seriously  the  movement  for  co-operative 
management  is  taken  in  England  and  how  rapid  the  progress  it  appears 
to  be  making.  Letters  from  American  firms  and  labor  officials,  as  well 
as  the  sentiments  and  opinions  expressed  in  various  industrial  and 
reconstruction  conferences,  show  that  this  country  is  also  rapidly 
awakening  to  a  recognition  of  the  significance  of  the  movement. 

We  have  shown  in  some  detail,  not  only  the  questions  involved  in 
the  organization  and  functioning  of  works  committees,  but  also  the 
difficulties  in  the  way  of  co-operative  management  here — the  conflict- 
attitude  of  American  employers  and  employees,  and  the  lack  of  a  well- 
rounded  organization,  in  trade  unions  and  employers'  associations,  of 
American  industries.  Because  primarily  of  this  last  fact  it  has  not 
seemed  probable  that  the  Whitley  (or  similar)  recommendations  for 
national  industrial  councils  would  at  once  find  application  in  the  United 
States,  and  for  this  reason  the  preceding  pages  have  dealt  very  largely 
with  works  committees,  i.  e.,  with  co-operative  management  in  indi- 
vidual plants,  in  which  subject  employers  and  labor  representatives 
are  showing  a  lively  interest. 

The  Second  Report  of  the  Whitley  Committee,  dealing  with  indus- 
tries not  fully  organized,  has  point  for  American  readers  chiefly  in  «io 
far  as  it  suggests  the  difficulties  of  starting  any  comprehensive  plan  of 
co-operative  industrial  management  in  this  country.  Works  committees 
are  given  prominence  as  an  essential  part  of  the  Whitley  plan,  but 

139 


there  is  indication  that  the  British  Government— the  Ministry  of 
Labor,  at  least— has  placed  most  stress  on  the  national  and  district 
councils  as  representative  bodies  of  the  different  industries.  In  all  the 
public  and  semi-public  pronouncements  ot\  industrial  reconstruction  in 
England  the  chief  emphasis  is  placed  on  the  industry  as  a  whole, 
and  works  committees  appear  as  only  a  part,  though  an  important  part, 
of  a  broad  plan  of  re-organization. 

Unfortunately,  we  have  in  this  country  thus  far  paid  singularly 
little  attention  to  the  problems  of  industrial  reconstruction  and  no 
centralized  government  study  of  the  problems  which  are  bound  to  arise 
has  yet  been  instituted.  We  are  sure  to  need,  even  more  than  England, 
representative  bodies  in  each  industry,  like  the  Whitley  national  indus- 
trial councils,  but  few  have  had  the  temerity  to  suggest  their  establish- 
ment here. 

It   is   possible   that,   so   far   as   co-operative    management    makes 
headway  in  this  country,  it  will  do  so  from  below,  rather  than  from 
above,  as  in  England.     A  long  preparation,  and  the  development  of  a 
new  psycholog}-  in  the  works,  through   shop  and  works  committees, 
may  be   necessary  before   we   shall   be   ready   for   national   industrial 
councils  in  many  industries.    There  are  already,  however,  a  few  indus- 
tries which  are  sufficiently  well-organized  to  warrant  the  belief  that 
the  establishment  of  national  councils  in  them  would  not  be  an  insur- 
mountable task.     Among  these  are  the  stove  industry,  anthracite  and 
bituminous  coal  mining,  and  the  clothing  industries.     It  might  prove 
unfortunate,    from    the    standpoint   of   peace   and    democracy    in    an 
industry  as  a  whole,   for  its  separate  plants,  especially  if  they  were 
few,  large,  and  powerful,  to  organize  isolated  industrial  representation 
schemes.     The  outcome  of  this  procedure  might  be  that  the  employers 
in  the  whole  industry  would  be  organized,  or  at  least  able  to  maintain 
mutual  understanding  as  to  industrial  and  commercial  policies,  while 
the  employees  would  be  segregated  into  plant  organizations  with  no 
central  council,  at  least  so  long  as  the  international  unions  of  the  various 
crafts  remained  unrecognized.    On  the  other  hand,  it  is  entirely  possible 
that  these  separate  plant  industrial  representation  systems  might  lead 
to  union  recognition  and  to  collective  bargaining  on  an  industry-wide 
scale,  and  open  the  way  to  the  formation  of  national  joint  industrial 
coucils. 

There  are  those  who  hold  that  American  labor  is  no  more  ready 
than  American  capital.  "The  American  does  not  relish  regulation  and 
regimentation.  He  is  too  near  the  pioneer  stage  of  development 
The  hard,  stubborn  fact  is  that  the  average  American  wage-worker  is  a 
conservative  and  an  opportunist."^  This  is  doubtless  in  a  measure  true, 
yet  the  recommendation  of  the  Executive  Committee  of  the  American 

»  Victor  S.  Yarros,  in  the  Xation,  October  5,  1918,  p.  373. 

140 


i 


V  ■    » 


At  t 


11  > 


Federation  of  Labor  should  be  remembered.  If  organized  labor  can 
be  convinced  that  works,  committees  and  industrial  councils  do  not 
mean  a  limitation,  but  an  extension,  a  broadening,  and  a  humanizing 
of  collective  bargaining,  there  is  no  reason  to  suppose  that  it  will  not 
be  heartily  in  favor  of  it. 

Has  the  war  produced  any  bases  from  which  industrial  councils 
could  naturally  develop?  Thought  turns  at  once  to  the  various  war 
labor  adjustment  boards,  but  only  to  turn  away  in  doubt.  These  boards 
have  performed  a  remarkable  service  during  the  war  in  maintaining 
industrial  peace  and  continuity  of  production  under  conditions  which 
might  early  have  produced  widespread  industrial  strife.  In  this  task 
they  have  had  the  effective  co-operation  of  the  officials  of  the  interna- 
tional unions  as  well  as  that  of  the  employers.  But  they  are  Govern- 
ment boards,  their  members  do  not  all  belong  to  the  industries  con- 
cerned, and  their  functions  have  been  limited  to  the  settlement  and 
prevention  of  disputes,  often  in  a  way — necessary  under  the  circum- 
stances— amounting  to  compulsory  arbitration.  The  authority  which 
the  boards,  by  reason  of  their  function,  have  had  to  exercise  has 
naturally  produced  some  restlessness,  especially  on  the  part  of 
employers,  and  a  desire  to  free  industrial  relations  from  governmetnal 
interference  at  the  earliest  practicable  moment.  The  mere  fact  that 
the  task  of  the  boards  has  been  limited  to  adjustment  of  wage  condi- 
tions renders  it  doubtful  whether  they  could  give  much  assistance  in 
the  formation  of  joint  national  industrial  councils,  the  functions  of 
which  would  be  wider  and  almost  entirely  of  a  different  nature.  It 
would  be  unfortunate  were  the  erroneous  idea  to  gain  currency  that  the 
chief  function  of  industrial  councils  is  to  be  the  making  of  contracts 
between  employers  and  employees.  This  point  is  given  emphasis  by 
the  Industrial  Reconstruction  Council: 

If  the  individualistic  manufacturer  must  widen  his  range  of 
vision  to  the  conception  of  a  trade  as  a  whole,  in  which  labor  is 
interested  jointly  with  capital,  the  idea  that  an  industrial  council 
is  a  new  name  for  a  kind  of  glorified  conciliation  board  or  wages 
board  must  also  completely  disappear.  Its  objects  are  not  limited 
to  the  settlement  of  wage  differences.  Nothing  needs  be  said 
against  conciliation  boards  or  similar  bodies  .  .  .  but  today,  to 
use  a  famous  phrase  of  Burke,  men's  minds  are  being  irresistibly 
drawn  to  a  higher  conception  of  the  part  which  Labor  and  Capital 
can  jointly  play  in  shaping  and  controlling  the  industry  of  the 
future.^ 

Nevertheless  it  may  be  suggested  that  the  members  of  the  various 
war    labor    adjustment   boards,    as    well    as    the    industrial    relations 

^  Trade   Parliaments,   why  they   should   be   formed   and   how   to   form   one   in   your   trade 
p.   4.      (London,    no   date.) 

141 


divisions  of  the  various  Government  production  departments  should 
exert  their  influence  toward  securing  the  calling  of  national  joint  con- 
ventions of  employers  and  representatives  of  labor  in  the  great  staple 
industries  with  view  to  establishing  joint  industrial  councils. 

In  the  Pacific  Northwest,  the  fine  work  of  the  Loyal  Legion  of 
Loggers  and  Lumbermen  seems  already  to  have  paved  the  way  for  a 
joint  industrial  council  for  that  lumbering  district,  but  the  creation  of 
a  national  council  in  the  lumbering  industry  as  a  whole  would  involve 
a  great  variety  of  sectional  problems  and  interests.  Possibly  the  very 
size  of  the  country  will  be  one  obstacle  in  the  way  of  the  establishment 
of  national  councils,  but  inasmuch  as  most  manufacturing  is  centered 
in  the  northeastern  states,  the  difficulty  need  not  be  serious.^ 

It  is  not  to  any  existing  organizations  or  bodies,  whether  govern- 
mental or  otherwise,  that  we  are  to  look  for  the  basis  of  the  formation 
of  national  industrial  councils.  We  shall  find  it,  the  rather,  in  the  new 
spirit  made  possible  by  the  necessity  for  industrial  peace  and  unity 
during  the  war.  Generally  speaking,  although  there  have  been  here 
and  there  what  seemed  unreasonable  demands  and  pig-headed  stubborn- 
ness on  one  side  or  the  other,  labor  and  capital  have  buried  the  hatchet 
—not  deep  perhaps,  but  still  buried— and  put  their  shoulders  to  the 
wheel  of  production.  There  are  indications  that  labor  and  capital 
understand  each  other  better  than  they  did  two  years  ago,  and  both 
sides  show  a  tendency  to  grasp  the  fact  that  co-operation  and  a  square 
deal  will  accomplish  both  a  greater  output  and  more  justice  than  will 
antag-onism  and  conflict.  The  seemingly  universal  acceptance  of  the 
principle  of  the  living  wage  laid  down  by  the  National  War  Labor 
Board,  the  adoption  of  the  basic  eight-hour  day  by  the  United  States 
Steel  Corporation,  and  the  establishing  of  industrial  representation 
plans  in  several  large  plants  hitherto  not  known  to  be  especially  friendly 
to  organized  labor  are  significant  indications  that  a  new  spirit  is  mov- 
ing among  employers.  There  is  reason  to  hope  that  organized  labor 
will  meet  the  employers  half  way.  It  would  be  a  matter  for  keen 
regret  if  the  new  spirit  of  co-operation  fostered  by  the  exigencies  of 
war-time  production  were  left  to  fade  away  and  American  industry 
lapse  back  into  the  old  time  conflict-psychology. 

The  advantages  which  properly  organized  works  committees  may 
be  hoped  to  bring  have  been  sufficiently  explained.  The  Whitley  Com- 
mittee, the  Industrial  Reconstruction  Council,  the  Garton  Foundation, 
and  other  bodies  have  set  forth  the  functions  and  advantages  of  indus- 
trial councils,  with  varying  emphasis.  While  it  is  not  the  purpose  of 
this  survey  of  co-operative  management  to  go  into  the  broader  and 
more    far-reaching  aspects   of   the   matter,  a   brief   summary  of  the 

»  Another    difficulty   which    will    be    encountered,    should    the    council    movement    develop 
will  be  found  in  the  indefinite  limits  and  overlapping  of  some  industries.     It  is  not  necessary 
to  discuss  this,  however.     The  well-defined  industries  will  naturally  be  organized   first 

142 


'••*,    * 


';/ 


ii 


broader  functions  of  industrial  councils  in  relation  to  the  economic 
situation  at  large  may  not  be  amiss. 

It  has  already  been  pointed  out  that  the  councils  would  diflFer 
greatly  from  the  wage  conferences  with  which  large  scale  collective 
bargaining  has  made  us  familiar.  Collective  bargaining  has  had  the 
advantage  that  it  is  collective,  the  disadvantage  that  it  is  a  bargaining — 
a  fixing  of  terms  of  sale.  While  it  cannot  be  said  that  all  bargaining 
or  contracting  elements  would  necessarily  be  omitted  from  the  func- 
tions of  industrial  councils,  the  contracting  function,  if  present  at  all, 
would  be  subordinate.  In  a  collective  bargaining  conference  each  side 
tries  to  get  as  many  concessions  as  it  can  out  of  the  other.  In  an 
industrial  council  both  sides  join  to  get  as  much  harmony,  efficiency, 
and  productivity  as  they  can  for  the  industry.  Such  ''bargaining"  as 
is  done  is  done  for  the  good  of  the  whole. 

To  this  end  the  first  function  of  a  council  is  to  provide  an  organi- 
zation and  a  procedure,  and  to  foster  a  state  of  sentiment,  which  will 
lead  to  dependable  good  feeling  and  active  co-operation  between 
employers  and  employees.  As  the  works  committees  give  the  workers 
some  opportunity  to  see  the  problems  which  are  always  confronting 
the  managers,  and  the  managers  a  chance  to  get  an  intimate  understand- 
ing of  the  needs  and  ideas  of  the  men  within  individual  plants,  so  the 
industrial  councils  would  do  for  the  whole  industry.  Doubtless  for 
some  time  to  come  many  employers  will  hesitate  to  lay  their  cards  on 
the  table  where  their  employees  can  see  them— in  some  cases  profits 
are  too  high,  and  in  others  the  employer  is  having  to  struggle  to  keep 
afloat.  The  secrets  of  the  individual  business,  however,  would  not 
have  to  be  revealed.  The  common  interests  of  the  industry  constitute 
the  field  of  the  councils'  functions.  If  labor  and  capital  can  bring 
themselves  to  work  for  the  interest  of  the  industry,  and  within  it,  live 
and  let  live,  gauging  their  expectations  as  to  the  level  of  wages  and 
profits  upon  the  state  of  the  industry,  there  is  good  reason  to  suppose 
that  no  legitimate  interest  will  suflfer  injustice. 

Moreover,  just  as  works  committees  are  supposed  to  give  some 
outlet  for  the  instinct  of  self-expression  for  the  workers  in  the  plant, 
the  councils  might  be  expected  to  enlarge  the  view  of  the  workers' 
representatives  and  give  them  a  chance  to  serve  the  industry  as  well  as 
the  interests  of  a  particular  part  of  it.  In  other  words,  the  workmen 
would  come  to  feel  that  they  have  a  direct  stake  in  the  industry  as  a 
whole,  along  with  the  employers.  An  industrial  statesmanship  of  a 
new  type  could  in  time  be  expected  to  result,  embodying  the  principles 
of  democracy  and  industrial  efficiency,  and  motivated  by  the  real 
interest  which  the  workers  would  develop  in  the  larger  administration 
of  industrial  aflFairs. 

143 


Ir  the  long  run  it  is  entirely  possible  that  industry  so  organized 
would  need,  and  would  ask  for,  less  governmental  regulation  than  is 
now  necessary  and  expected.  Industrial  self-government  in  a  double 
sense — self-government  in  the  industry  and  of  it  would  develop.  This 
would  tend  to  relieve  the  legislatures  and  Congress  of  a  considerable 
portion  of  the  great  mass  of  questions  they  now  have  to  handle,  not 
always  successfully  because  of  lack  of  expert  knowledge. 

Both  the  Whitley  Committee  and  Mr.  Roberts,  in  his  October 
letter,  suggest  the  desirability  of  having  a  representative  body  in  each 
industry  with  which  the  Government  could  confer,  when  necessary, 
upon  matters  concerning  the  industry.  It  is  not  necessary  to  point 
out  what  a  boon  it  would  have  been,  both  to  the  Government  and  to 
industry  itself  had  national  joint  industrial  councils  been  in  existence 
in  this  country  during  the  war.  As  it  was,  the  various  government 
departments,  from  the  President  down,  had  to  consult  labor  and  capital 
separately,  or  at  best  in  hastily  arranged  conferences.  Even  these 
would  have  been  difficult  to  secure  but  for  the  American  Federation 
of  Labor  and  the  machinery  which  the  international  union  officials 
had  at  hand. 

One  other  matter,  which  may  become  a  very  important  function 
of  the  councils,  is  the  determination  of  conmiercial  policy,  with  special 
reference  to  price  regulation.  Much  of  the  English  literature  on  co-op- 
erative management  mentions  the  need  of  industrial  harmony  and 
solidarity  to  the  end  that  a  united  front  may  be  put  up  in  foreign  com- 
petition. Not  too  much  need  be  made  of  this  point.  But  if  the  indus- 
tries of  any  country  are  going  to  organize  to  capture  foreign  markets, 
that  organization  should  give  labor  an  effective  voice.  Allusion  w^as 
made  above  to  the  action  of  the  photo-engraving  firms  of  New  York 
City  in  accepting  and  publishing  a  price-list  made  up  by  the  workers. 
According  to  report,  the  prices  charged  for  photo-engraving  had  been 
chaotic,  unreasonable  competition  which  counted  not  the  cost  was 
prevalent,  and  the  natural  result  had  been  that  wages  failed  to  rise  in 
proportion  to  the  cost  of  living.  In  other  words,  the  workers  had  to 
suffer  for  the  cut-throat  competition  and  the  failure  of  the  employers 
to  install  accurate  cost  accounting.  Whatever  profit  the  employers  may 
have  reaped,  the  consumers  were  in  effect  subsidized  by  the  workers. 
The  case  is  parallel  to  what  naturally  happens  in  an  intense  competition 
for  foreig-n  markets.  Employers  are  under  constant  temptation  to 
attempt  to  reduce  expenses  by  cutting  down  wages.  The  net  result 
is  that  the  foreign  consumer  is  subsidized  l)y  the  American  workman. 

The  National  War  I^abor  Board  early  in  the  war  issued  a  state- 
ment of  principles.  Among  them  was  the  one  declaring  that  the  worker 
is  entitled  to  a  wage  sufficient  to  maintain  himself  and  familv  in  health 

144 


^      • 


M> 


i% 


¥  X 


ir 


and  comfort.^  The  workers  may  well  ask  w^hy  the  worker  is  not 
entitled  to  a  "living  wage"  in  peace  as  well  as  in  war.  The  National 
Consumers'  League  and  other  associations  have  long  protested  against 
the  existence  of  industries  which  cannot  pay  their  way.  Constitutional 
difficulties  stand  in  the  way  of  minimum  wage  legislation  for  men. 
Even  were  this  not  the  case  it  would  be  better  for  the  industry  itself 
to  establish  and  maintain  a  living  wage.  By  regulating  competition, 
standardizing  patterns  and  methods,  adoption  of  scientific  cost  account- 
ing, and  refusal  to  sell  below  costs,  this  can  be  done.  The  consumer 
must  pay  his  way.  The  employer  has  no  right  to  pass  the  costs  of 
competition  dowm  to  the  worker,  rather  than  pass  the  costs  of  produc- 
tion on  to  the  consumer.  Joint  industrial  councils,  therefore,  are 
desirable  in  connection  with  foreign  trade,  for  two  reasons :  First, 
they  will  make  for  the  necessary  co-operation  and  efficiency ;  second, 
they  will  put  the  workers  in  position  to  guard  against  the  danger  that 
prices  will  be  cut  to  the  foreign  consumer  at  the  expense  of  American 
wage  standards. 

Enough  has  been  said  to  indicate  that  the  establishment  of  joint 
industrial  councils  and  works  committees  means  a  new  spirit  and  a 
new  method  in  industry.  Neither  employers  nor  workmen  should  rush 
precipitately  to  adopt  suggestions  involving  so  radical  a  change  of 
viewpoint  and  relations.  It  is  not  likely  that  they  will  do  so.  Educa- 
tion is  necessary  on  both  sides,  and  the  introduction  of  industrial 
representation,  or  co-operative  management,  whether  in  the  individual 
plant  or  in  the  industry  as  a  whole  should  be  carefully  thought  out 
beforehand.  Each  plant  and  each  industry  has  its  own  peculiar  cir- 
cumstances to  which  the  new  plan  must  be  adapted,  and  for  which  no 
one,  certainly  no  one  not  conversant  with  the  inner  life  of  the  plant 
or  the  industry  itself,  can  lay  down  general  rules  capable  of  universal 
application.  It  should  be  noted,  however,  that  co-operative  manage- 
ment cannot  be  successfully  imposed  from  above.  And  labor  and 
capital  can  educate  each  other  to  co-operation  by  beginning  to 
co-operate. 

It  will  be  understood  that  whatever  recommendations  or  sugges- 
tions have  been  made  in  these  pages,  either  with  regard  to  industrial 
councils  or,  in  more  detail,  to  w^orks  committees,  are  suggestions  only. 
Only  in  comparatively  large  plants  will  all,  or  most  of,  the  functions 
allotted  to  works  committees  actually  be  exercised.  Smaller  plants  will 
have  to  organize  their  committees  and  assign  functions  according  to 
their  particular  needs.  The  spirit  and  organization — or  lack  of  it — is 
such  in  American  industry  that  we  probably  cannot  look  forward  to  the 

*"1.      The   right   of  all  workers,   including  common   laborers,   to  a  living   wage   is  hereby 
declared. 

2.      In    fixing   wages,    minimum   rates   of  pay   shall   be   established   which    will   ensure   the 
subsistence  of  the   worker   and  his  family  in   health  and   reasonable  comfort." 

145 


early  creation  of  joint  standing  national  councils  for  industrial  self- 
government,  but  there  is  no  great  obstacle  to  the  gradual  introduction  of 
works  committees  in  industrial  plants.  The  strong  movement  in  Eng- 
land and  the  rapidly  developing  sentiment  in  this  country  for  co-opera- 
tive management  indicate  a  growing  perception  of  the  part  which 
mutual  understanding  and  good-will  play  in  the  development  of  that 
will-to-do  and  that  unity  of  purpose  in  industry,  which  must  come  to 
be  the  standard  and  the  ideal  of  the  productive  unit,  employer  plus 
employees. 


i 


Appendix  I 


MODEL  CONSTITUTION  OF  A  JOINT  INDUSTRIAL 

COUNCIL 
(Recommended  by  the  Ministry  of  Labor,  Circular  H.  Q.  7A) 

(From  United  States  Bureau  of  Labor  Statistics,  Monthly  Labor  Review,  Aug.  1918,  pp.  78,79.) 


146 


1.    Membership 

The  council  shall  consist  of members,  appointed  as  to  one  half  by 

associations  of  employers  and  as  to  the  other  half  by  trade  unions. 

Associations  of  employers: 

Number  of 
Representatives 

(1)     

(2)     

(3)     

etc.  

Total 

Trade  Unions: 

(1)     

(2)     

(3)     

etc.  

Total 

2.    Reappointment 

The  representatives  of  the  said  associations  and  unions  shall  retire  annually, 
and  shall  be  eligible  for  reappointment  by  their  respective  associations  and 
unions.  Casual  vacancies  shall  be  filled  by  the  association  concerned,  which  shall 
appoint  a  member  to  sit  until  the  end  of  the  current  year, 

3.    Committees 

The  council  may  delegate  special  powers  to  any  committee  it  appoints.  The 
council  shall  appoint  an  executive  committee  and  may  appoint  such  other  stand- 
ing or  sectional  committee  as  may  be  necessary.  It  shall  also  have  the  power  to 
appoint  other  committees  for  special  purposes.  The  reports  of  all  committees 
shall  be  submitted  to  the  council  for  confirmation  except  where  special  powers 
have  been  delegated  to  a  committee. 

4.    Coopted  Members 

The  council  shall  have  the  power  of  appointing  on  committees  or  allowing 
committees  to  coopt  such  persons  of  special  knowledge  not  being  members  of  the 
council  as  may  serve  the  special  purposes  of  the  council,  provided  that  so  far 

147 


r 


II 


as  the  executive  committee  is  concerned:  (a)  The  two  sides  of  the  council 
shall  be  equally  represented,  and  (b)  any  appointed  or  coopted  members  shall 
serve  only  in  a  consultative  capacity. 

N.  B.— It  is  desirable  to  take  power  to  appoint  representatives  of  scientific, 
technical,  and  commercial  associations  upon  committees  and  subcommittees  of 
the  council,  and  the  above  clause  would  give  this  power. 

5.    Officers 

The  officers  shall  consist  of  a  chairman  or  chairmen,  a  vice-chairman,  a 
treasurer,  and  a  secretary  or  secretaries. 

(1)  The  chairman. 

N.  B.— The  Whitley  Report  suggests  that  the  appointment  of  a  chairman  or 
chairmen  should  be  left  to  the  council,  who  may  decide  that  there  should  be  (t) 
a  chairman  for  each  side  of  the  council,  (ii)  a  chairman  selected  from  the 
members  of  the  council  (one  from  each  side  of  the  council),  (Hi)  a  chairman 
chosen  by  the  council  from  independent  persons  outside  the  industry,  or  (iv)  a 
chairman  nominated  by  such  persons  or  authority  as  the  council  may  determine, 
or,  failing  agreement,  by  the  Government. 

(2)  Secretary. 

The  council  shall  be  empowered  to  maintain  a  secretary  or  secretaries  and 
such  clerical  staff  as  it  may  think  fit. 

All  honorary  officers  shall  be  elected  by  the  council  for  a  term  of  one  year. 

6.    Meetings  of  the  Council 

The  ordinary  meetings  of  the  council  shall  be  held  as  often  as  necessary 

and  not  less  than  once  a  quarter.    The  meeting  in  the  month  of shall 

be  the  annual  meeting.    A  special  meeting  of  the  council  shall  be  called  within 

<lays  of  the  receipt  of  a  requisition   from  any  of  the  constituent 

associations  or  from  the  executive  committee.     The  matters  to  be  discussed  at 
such  meetings  shall  ht  stated  upon  the  notice  summoning  the  meeting. 

7.    Voting 
The  voting  both  in  council  and  in  committees  shall  be  by  show  of  hands 
or  otherwise  as  the  council  may  determine.     No   resolution   shall  be  regarded 
as  carried  unless  it  has  been  approved  by  a  majority  of  the  members  present 
on  each  side  of  the  council. 


Where  any  industrial  council  so  desires,  a  civil  servant  with  the  necessary 
experience  will  be  assigned  the  duties  of  liaison  officer  by  the  Ministry  of  Labor. 
He  will  act  only  as  and  when  required  and  in  a  purely  advisory  and  consultative 
capacity,  and  will  be  available  when  desired  for  any  meetings  of  the  council. 

By  this  means  similarity  of  method  and  continuity  of  policy  in  the  various 
industrial  councils  will  be  assured,  and  the  experience  and  proposals  of  one 
council  will  be  available  for  all  the  others. 

11.    District  Councils  and  Works  Committees 

It  will  be  necessary  for  the  council  when  formed  to  consider  the  necessary 
arrangements  for  district  councils  and  works  committees  if  the  conditions  of 
the  industry  are  such  as  to  require  them.  Obviously  existing  local  conditions 
and  existing  organizations  will  have  to  be  taken  into  account  and  the  variety 
of  such  conditions  make  it  difficult  to  suggest  any  draft  constitution  which 
would  be  of  value.  The  Ministry  of  Labor  will,  however,  be  glad  to  supply 
examples  of  existing  schemes  and  other  information  at  their  disposal. 


The  quorum  shall  be. 


8.    Quorum 

members  of  each  side  of  the  council. 


9.    Finance 

The  expenses  of  the  council  shall  be  met  by  the  associations  and  trade 
unions  represented. 

10.    Relation  of  a  Joint  Industrial  Council  to  the  Government 

It  is  desirable  that  there  should  be  intimate  and  continuous  touch  between 
the  industrial  councils  and  the  various  Government  departments  interested,  not 
only  to  secure  prompt  attention  from  the  right  officials,  but  also  to  obtain  in- 
formation as  to  what  other  councils  are  doing.  To  meet  this  need,  the  Ministry 
of  Labor  has.  at  the  request  of  the  Government,  set  up  a  special  section  dealing 
with  industrial  councils. 

148 


f 


149 


Appendix  II 


REBUILDING  TRADE— AN  OLIVE  BRANCH  TO  LABOR 

(From  the  London  Times.  Oct.   10,   1917.) 


An  important  manifesto  on  industrial  reconstruction  which  has  just  been 
issued  bears  the  signatures  of  more  than  40  well-known  business  men  and 
university  professors,  and  of  a  still  larger  number  of  officers  of  trade  associa- 
tions. The  manifesto  has  also  the  support  of  the  editors  of  some  70  trade 
and  technical  journals.  '  The  scheme  outlined  in  the  manifesto  is  put  forward 
as  the  practical  outcome  of  all  the  authoritative  suggestions  that  have  been  made 
during  the  last  three  years  for  the  organization  of  our  industries  and  the  develop- 
ment of  our  trade  and  commerce. 

Concerning  the  need  of  industrial  reconstruction  the  signatories  say  that 
to  meet  the  urgent  needs  of  the  times  it  will  be  necessary  to  increase  consider- 
ably our  efforts  to  develop  our  industries  on  the  following  lines: — 

(1)  The  mobilization  of  each  industry  for  common  action. 

(2)  A  greater  degree  of  co-operation  between  manufacturers. 

(3)  Co-operation  between  labor  and  capital  and  the  avoidance  of  industrial 

strife. 

(4)  A  more  complete  association  between  scientific  institutions  and  traders. 

(5)  Education  better  adapted  to  our  commercial  needs. 

(6)  Each  industry  to  be  studied  as  a  whole,  and  freed  from  unnecessary 

internal  competition. 

(7)  Every  trade  to  present  a  united  front  to  foreign  competition. 

(8)  Output  regarded  as  a  duty  by  both  capital  and  labor. 

(9)  Encouragement  by  the  Government  of  the  activities  of  traders,  with  a 

minimum  of  interference. 

(10)  It  is  contended  that  the  matter  cannot  be  left  to  chance,  and  that  some 
national  scheme  is  necessary  which  shall  ensure  the  securing  of  these 
objects.     It  is,  therefore,  suggested; — 

(a)  That  a  national  organization,  on  lines  such  as  those  suggested  by  the 
Whitley  Report,  should  be  established,  which  will  retain  all  the  sterling  qualities 
of  our  present  individualistic  system  and  add  to  them  the  necessary  ordered 
force   to   ensure   greater   activity. 

(b)  That  such  an  organization  will  need  to  provide  for  the  representation 
of  all  classes  of  persons  engaged  in  a  given  industry. 

(c)  That  industry  should,  therefore,  be  enfranchised,  and  every  man  and 
woman,  employer  and  employed,  given  a  vocational  or  trade  vote  by  means  of 
which  this  representation  would  be  effectively  realized. 

(d)  That  every  citizen  should  have  the  right  to  register  with  some  approved 
trade  association  or  trade  union,  and  thus  an  industrial  or  vocational  register 
properly  classified  would  be  produced. 

150 


H 


I 


*■    ^  •* 


( 


{e)  That  trade  councils  should  be  elected  in  each  industry  from  the  trade 
associations  and  the  trade  unions.  Such  councils,  elected  upon  a  truly  repre- 
sentative basis,  would  be  able  to  speak  in  the  names  of  the  whole  of  their 
respective  industries. 

(/)  That  all  questions  as  between  the  Government  and  a  given  trade  should 
be  delegated  to  the  council  of  that  trade,  who  would  have  powers  to  deal  with 
them. 

{g)  That  questions  of  output,  education,  trade  schools,  scientific  research, 
export,  wages,  profits,  markets,  tariffs,  etc.,  should  be  settled  in  each  trade  by 
the  council  of  that  trade,  and  national  funds  spent  upon  these  matters  dispensed 
through  the  trade  councils. 

Finally,  the  manifesto  puts  forward  under  six  headings  a  scheme  for 
industrial  reconstruction.  It  is  suggested  that  the  basis  of  the  scheme  should 
be  a  vocational  franchise,  which  would  make  possible  the  organization  of  each 
trade  separately  under  a  trade  council  composed  of  capital  and  labor,  and  the 
decentralization  of  a  large  proportion  of  national  work  now  attempted  by 
Government  Departments.  The  Government,  it  is  proposed,  should  establish 
a  department  to  promote  or  encourage  trade,  and  the  first  function  of  this 
department  should  be  to  create  representative  trade  councils  in  every  trade. 
It  should  be  assisted  by  an  advisory  council,  consisting  of  the  chairmen  of  all 
the  trade  councils,  and  should  comprise  special  departments  for  export  and 
tariffs,  industrial  and  scientific  research,  commercial  education,  statistics  and 
finance,  welfare,   and   exhibitions  and   advertising. 

Generally,  the  scheme  involves  the  establishment  of  a  complete  new  system 
of  trade  government  comparable  to  our  existing  system  of  local  government, 
with  a  Ministry  at  the  head  with  powers  similar  to  those  of  the  Local  Govern- 
ment Board,  controlling  numerous  trade  councils,  with  powers  comparable  to 
those  of  existing  county  councils.  It  recognizes  the  essential  principle  that 
industrial  interests  should  be  grouped  by  trades  and  not  by  localities. 

The  manifesto,  signed,  as  it  is,  largely  by  manufacturers  and  officers  of 
employers'  associations,  is  described  definitely  as  an  olive  branch  to  labor.  It 
invites  the  workers  cordially  to  join  with  the  management  in  the  self-government 
of  industry,  and  offers  them  an  equal  status  and  responsibility,  on  the  controlling 
body. 

Among  the  signatories  are : — 

Lord  Henry  Cavendish-Bentinck,  M.  P.,  Sir  W.  Priestly,  M.  P.,  Sir  Edward 
Brabrook,  Sir  Herbert  Bartlett,  Sir  James  Heath,  Sir  Wilfred  Stokes,  Sir 
Charles  Macara,  Dr.  A.  P.  Newton,  Professor  Ripper,  Sir  Charles  H.  Bedford, 
Professor  T.  H.  Beare,  Sir  John  Benn,  Professor  Dickser,  Professor  Fleming, 
Dr.  E.  H.  Griffiths,  Professor  Kirkaldy,  Sir  Inglis  Palgrave,  Professor  Miles 
Walker,  and  many  others. 


151 


Appendix  III 


AGREEMENT  BETWEEN  ENGINEERING  EMPLOYERS' 

FEDERATION  AND  TRADE  UNIONS  IN 

GREAT  BRITAIN 

(From  United  States  Bureau  of  Labor  Statistics,  Monthly  Review,  March,  1918,  pp.  84,  85.) 


In  the  latter  part  of  1917  a  serious  strike  of  airplane  workers  occurred  at 
Coventry,  England,  in  which  the  matter  of  the  appointment  and  functions  of 
shop  stewards  became  acute.  An  agreement  was  finally  entered  into  between 
the  Engineering  Employers'  Federation  and  the  trade  unions  concerned,  the 
text  of  which,  taken  from  the  London  Morning  Post  of  December  24,  1917,  is 
given  herewith.  It  appears  that  the  Amalgamated  Society  of  Engineers  the 
Scientific  Instrument  Makers'  Union,  and  the  Enginemen's  Union  did'  not 
subscribe  to  the  terms,  their  representatives  not  being  present  when  the  settle- 
ment was  drawn  up,  but  it  is  understood  by  the  Engineering  Employers'  Federa- 
tion that  the  two  last-mentioned  unions  are  willing  to  agree  to  the  settlement, 
although  the  Amalgamated  Society  of  Engineers  still  remains  outside.  The 
agreement  covering  regulations  regarding  the  appointment  and  functions  of  shop 
stewards   is  as   follows: 

With  a  view  to  amplifying  the  provisions  for  avoiding  disputes  it  is  agreed : 

1.  The  workmen  who  are  members  of  the  above-named  trade  unions, 
employed  in  a  federated  establishment,  may  appoint  representatives  from  their 
own  number  to  act  on  their  behalf  in  accordance  with  the  terms  of  the 
agreement. 

2.  The  representatives  shall  be  known  as  shop  stewards. 

3.  The  method  of  election  of  shop  stewards  shall  be  determined  by  the 
trade  unions  concerned,  and  each  trade  union  parties  to  this  agreement  may 
appoint  shop  stewards. 

4.  The  names  of  the  shop  stewards  and  the  shop  or  portion  of  a  shop  in 
which  they  are  employed  and  the  trade  union  to  which  they  belong  shall  be 
intimated  officially  by  the  trade  union  concerned  to  the  management  on  election. 

5.  The  shop  stewards  shall  be  subject  to  the  control  of  the  trade  unions, 
and  shall  act  in  accordance  with  the  rules  and  regulations  of  the  trade  unions 
and  agreements  with  employers  so  far  as  these  affect  the  relation  between 
employers  and  work  people. 

6.  In  connection  with  this  agreement  shop  stewards  shall  be  afforded 
facilities  to  deal  with  questions  raised  in  the  shop  or  portion  of  a  shop  in 
which  they  are  employed.  In  the  course  of  dealing  with  these  questions  they 
may,  with  the  previous  consent  of  the  management  (such  consent  not  to  be 
unreasonably  withheld)  visit  any  other  shop  or  portion  of  a  shop  in  the  estab- 
lishment. In  all  other  respects  they  shall  conform  to  the  same  working  condi- 
tions as  their   fellow-workmen. 

152 


■* 


^* 


7.  Employers  and  shop  stewards  shall  not  be  entitled  to  enter  into  any 
agreement  inconsistent  with  agreements  between  the  Engineering  Employers' 
Federation  or  local  associations  and  the  trade  unions. 

8.  The  function  of  shop  stewards,  so  far  as  they  are  concerned  with  the 
avoidance  of  disputes,  shall  be  exercised  in  accordance  with  the  following 
procedure : 

(a)  A  workman  or  workmen  desiring  to  raise  any  question  in  which 
he  or  they  are  directly  concerned  shall  in  the  first  instance  discuss  the  same 
with  his  or  their  foreman. 

(b)  Failing  settlement,  the  question  shall,  if  desired,  be  taken  up  with 
the  management  by  the  appropriate  shop  steward  and  one  of  the  workmen 
directly  concerned. 

(r)  If  no  settlement  is  arrived  at  the  question  may,  at  the  request  of 
either  party,  be  further  considered  at  a  meeting  to  be  arranged  between 
the  management  and  the  appropriate  shop  steward,  together  with  a  deputa- 
tion of  the  workmen  directly  concerned.  At  this  meeting  the  organizing 
district  delegate  may  be  present,  in  which  event  a  representative  of  the 
employers'  association  shall  also  be  present. 

(d)  The  question  may  thereafter  be  referred  for  further  consideration 
in  terms  of  the  provisions   for  avoiding  disputes. 

(e)  No  stoppage  of  work  shall  take  place  until  the  question  has  been 
fully  dealt  with  in  accordance  with  this  agreement  and  with  the  provisions 
for  avoiding  disputes. 

9.  In  the  event  of  a  question  arising  which  affects  more  than  one  branch 
of  trade  or  more  than  one  department  of  the  works  the  negotiation  thereon 
shall  be  conducted  by  the  management  with  the  shop  stewards  concerned. 
Should  the  number  of  shop  stewards  concerned  exceed  seven  a  deputation  shall 
be  appointed  by  them,  not  exceeding  seven,  for  the  purpose  of  the  particular 
negotiation. 

10.  Negotiations  under  this  agreement  may  be  instituted  either  by  the 
management  or  by  the  workmen  concerned. 

11.  The  recognition  of  shop  stewards  is  accorded  in  order  that  a  further 
safeguard  may  be  provided  against  disputes  arising  between  the  employers  and 
their  work  people. 

12.  Any  questions  which  may  arise  out  of  the  operation  of  this  agreement 
shall  be  brought  before  the  executive  of  the  trade  union  concerned  or  the 
federation,  as  the  case  may  be. 


153 


Appendix  IV 


A  NONUNION  COLLECTIVE  BARGAINING  PLAN 


(From    UnitH    States    Ru 


BY     BORIS     EMMET,     PH.D. 

reau    of    Labor ^ St«istks.  ^  M„„,»;y    L„bor    Review.    August,    :918. 


The  collective  bargaining  plan  described  in  this  article  is  given  because 
It  represents  an  interesting  and  instructive  example  of  what  may  be  called 
nonunion  collective  bargaining."  By  this  term  is  meant  the  collective  bar- 
gaining between  an  employer  and  his  own  employees  without  the  intervention 
of  any  union  outside  the  establishment.  The  establishment  whose  collective- 
bargaimng  scheme  is  here  described  is  a  Middle  Western  firm  manufacturing 
women  s  ready-to-wear  clothing  and  having  about  700  employees,  chiefly  women 
and  gir  s.  The  three  years'  operation  of  the  plan  has  resulted  in  putting  on 
a  collective  basis  the  wage  bargaining  of  the  establishment,  as  well  as  hours  of 
labor,  discipline,  discharges,  and  adjustment  of  grievances. 

Nature  of  the   Plan 
Under  the  scheme  there  are  three  separate  bodies,  known,  respectively,  as 

aL'r  k''..  /  k";''  '"''  "■"  ''""'^  °f  representatives.  The  senate  and  the 
cabinet,  both  of  which  represent  the  interests  of  the  firm,  were  created  simul- 
taneously m  June.  1914.  The  organization  of  the  employees,  termed  the  house 
ot  representatives,  was  created  one  year  later. 

The  meml^rs  of  the  senate  are  salaried  employees  directly  connected  with 
the  planning  of  the  work  of  the  institution,  namely,  heads  of  departments,  their 
as  stants,  superintendents  and  their  assistants.  Application  for  memberhip 
must  be  submitted  in  wntmg  to  the  secretary  of  the  senate  after  the  applicant 
has  secured  the  indorsement  of  the  firm  and  of  at  least  one  member  of  the 
senate.  A  majority  vote  of  the  members  present  is  required  for  election 
Membership  ceases  upon  termination  of  employment  with  the  company.     Each 

present  the  rules  and  regulations  governing  the  deliberations  may  be  amended 
Regular  meetings  are  held  once  a  week,  but  special  sessions  may  be  convened 
whenever   occasion   arises.     The   officers   of  the   senate  are   a   president   vice- 

sh7„"fnr';  f '7'  """"^'  '""  ^^^«^"t-t-arms,  all  elected  by  the  member- 
ship  for  a  term  of  one  year. 

The  members  of  the  house  of  representatives  are  elected  from  among  those 

months.  This  qualification  is  at  present  relatively  unimportant  for  the  reason 
that  four-fifths  of  the  employees  of  this  company  have  been  in  its  servTce 
more  than  six  months.  The  representatives  are  elected  by  popular  vote  of  the 
emplc^ees,  ,n  the  ratio  of  1  representative  for  every  15  employees,  but  each 
department,  however  smalK  has  at  least  one  representative  EacL  member 
of  the  house  has  one  vote.  The  officers  of  this  organization  include  a  president 
vice-president,  treasurer,  secretary,  and  sergeant-at-arms,  all  elected  by  popular 
rote.  Elections  are  held  regularly  twice  a  year,  during  the  first  weeks  o 
February  and  August.     Regular  meetings  of  the  employees'  representatives  are 

154 


•«  1 


I 


«      f 


held  every  other  Tuesday  and  special  meetings  may  be  called  whenever  necessary. 
The  rules  of  procedure  of  the  body  may  be  attended  by  a  two-thirds  vote  of  its 
membership. 

The  cabinet  consists  of  members  of  the  executive  board  of  the  company, 
and  has  the  final  word  in  all  matters  referred  to  it  by  the  joint  action  of  the 
house  and  senate.  Members  of  the  cabinet  may  attend  the  meetings  of  either 
the  senate  or  the  house,  but  have  no  power  to  vote.  Unless  especially  requested, 
however,  members  of  the  firm  do  not,  as  a  rule,,  attend  any  of  the  sessions  of 
the  representative  organizations  of  the  employees. 

The  jurisdiction  of  the  house  and  senate  is  unlimited.  These  bodies  are 
privileged  to  discuss  and  act  upon  any  proposition  that  may  affect  the  interests 
of  the  employees  and  the  firm.  A  proposition  may  originate  in  either  house, 
but  must  also  be  referred  to  the  other  house  for  discussion  and  action  thereu 
In  case  of  disagreement  in  the  decisions  reached  the  disputed  points  are  referred 
to  a  joint  conference  committee  consisting  of  an  equal  number  of  representa- 
tives of  both  organizations.  The  conference  committee  endeavors  to  reach  some 
mutually  satisfactory  compromise,  and  usually  succeeds.  The  compromise  is 
then  submitted  to  the  cabinet  for  approval.  As  a  matter  of  actual  practice, 
propositions  agreed  to  by  both  houses  in  the  manner  indicated  above  are  usually 
assented  to  by  the   firm. 

Under  the  provisions  of  the  scheme  there  are  a  number  of  standing  com- 
mittees consisting  of  an  equal  number  of  representatives  from  both  organiza- 
tions. The  most  important  of  these  are  the  betterment  committee,  which  hears 
complaints  and  adjusts  grievances,  and  the  welfare  committee,  which  deals  with 
matters  affecting  the  general  comfort  and  welfare  of  the  employees.  There  are 
many  other  committees,  mostly  of  minor  importance,  such  as  a  committee  on 
appropriations,  in  charge  of  expending  the  funds  annually  appropriated  by  the 
company^  for  entertainments,  athletics,  etc.,  a  program  committee  for  entertain- 
ments, and  a  fire-drill  committee.  New  committees  are  created  whenever 
necessity  arises   for  handling  special   questions. 

A  discharged  employee  has  the  right  to  refer  his  case  to  the  betterment 
committee.  If  the  decision  of  the  betterment  committee  is  not  satisfactory  to 
the  employee,  he  may  file  a  notice  to  that  effect  with  the  "professional"  secretary 
of  the  house  of  representatives  and  the  senate.  The  latter  two  organizations 
then  select  a  board  of  review  consisting  of  five  persons,  two  selected  by  the 
senate,  two  by  the  house,  and  the  fifth  by  mutual  consent  of  both  organizations. 
The  majority  decision  of  the  board  is  final.  The  board  has  full  power  over 
discharge  cases  and  may  reinstate  any  employee  who,  in  its  opinion,  was  wrong- 
fully discharged.  The  company,  however,  specifically  reserves  the  right  to 
lay  off  employees  on  account  of  lack  of  work,  and  a  lay-off,  even  when  in  effect 
equivalent  to  a  discharge,  is  not  subject  to  the  jurisdiction  of  the  board. 

By  a.  special  resolution  adopted  April  1,  1918,  a  permanent  wage  committee 
was  created.  This  committee  is  composed  of  one  member  selected  by  the  em- 
ployees of  each  factory  department  and  one  employee  chosen  to  represent  the 
office  and  clerical  force  of  the  firm.  The  functions  of  this  committee,  as  defined 
in  the  resolution,  are  as  follows:  (1)  To  recommend  and  pass  upon  general 
changes  in  wages ;  (2)  to  suggest  and  pass  upon  minimum  and  maximum  rates 
to   be   paid   for    the   various   operations    according   to   skill    involved,    length    of 

*  For  the   purpose  of  maintaining   the  social   activities  of  its  employees   the   company   sets 
aside   annually   about   $800.      This   amount   does  not  include   the   salary    of  the   so-called    "pro- 
fessional'' secretary  who  is  an  employee  of  the  company  having  in  charge   the  executive  and 
clerical  work  incidental  to  the  operation  of  the  bargaining  scheme,  such  as  keeping  the  record- 
of  the  proceedings,  calling  meetings,   etc. 

155 


3  ;r         .ri'    '"   ^'''"'^''"''■-     (^)    '«   ^i'    with   the    factory   planning 
boar.1    composed  of  the  supermtendents,  for  the  purpose  of  passing  upon  indi 
vdual  increases  m  wages;  and  (4)  to  receive  complaints  of  individuals  to  whom 
increases  were  denied. 

Actual  Workings  of  Plan 
That  this  collective  bargaining  scheme  has  been  of  benefit  to  the  employees 
niav    be   seen    from   the   hst   presented   below,   enumerating   some   of  the   more 
important  matters  dealt  with  and  adjusted  collectively,  as  well  as  from  the  brief 
account  given  later  of  the  changes  in  wages  during  the  last  18  months. 

Ordered  that  raw  materials  be  sold  to  employees  at  cost  plus  15 
per    cent 

Ruled  that  no  freight  be  carried  on  elevators  between  7  15  and  7  45 '    ^^'       '   ^^^ 
a.  m.  and  11.30  a.  m.  to  12.15  p.  m "      peb    2^    IQIfi 

Ordered  that  1  week's  vacation  with  pay  be  granted  to'ihose'in"        '     "' 
service  1  year  or  longer  .         ^^ 

Introduced  a  48-hour  week y         f'     oJ^ 

Ordered  that  2  weeks'  vacation  with  pay'be'g;anted  to'those'in       "' 
service  more  than  3  years  M       20    IQIfi 

Decided  that,  whenever  possible,  promotions  be  made' f mm 'rank'     ^^       ' 
and  file   

Employed  a  "professional"  secretary 'for' ih^'hou'se' and  sen'ate' .'.'."  ."jaT  lo'   m; 
Granted  increases  m  wages  of  5  and  10  per  cent jan     23    1917 

formulated  rules  of  procedure  to  govern  a  board  of  r'evie'w' Jo"       '        ' 
handle  discharges    , 

Decided  that  the  positions  of  enlisted  men  be  hel'd 'open 'f'o'r'them  "  May  29*  1917 

Granted  an  increase  in  wages  of  5  per  cent Tune  20 '  1917 

Agreed  to  readjust  wages  in  accordance  with  the  changes' in' ihe 
cost  of  living   

Created  a  permanent  committee' to'deal  with  wage  questions';;  ii.ATr.   \7.   1918 

In  these  days  of  advancing  prices  the  attention  of  employees  is  centered 

on  the  question  of  wages.     Since  the  beginning  of  1917  the  question  of  wages 

has  been  the  subject  of  freqent  discussions  of  the  representative  bodies     The 

'ee"nt"the°neir'7,"  "'''  '''"'"  ^''  ^°""™'^="  ^^  f°"°'^-    ^he  workers, 

en     fves    and    h  f"-   '"'°'""'   "^"="'^  '^'^"^   ^   "■"""«  °f  ^^eir   repre- 

sentatives   and   by   resolution   mstructed    them   to   make   certain   demands    for 

increases  ,n  wages.    The  matter  would  then  be  taken  up  at  the  next  meeting  o 

he  house  for  the  purpose  of  arriving  at  a  definite  figure.    As  a  rule   the  ho1,se 

id:Tair:hed?  H  ^t-  ""= "™"'"  ~"<'''"'"'  °'  '■-'-".  "odmed  cr- 

wou  d  hen  he  T  7  "t™"^'""^"'^-  The  figure  agreed  upon  by  the  house 
nfo  lal  1  f  ^^'^"^^'?  "?^  ^^"^'-  The  latter,  after  detailed  discussions  and 
.normal  conferences  wnh  the  management,  then  arrived  at  some  decision  In 
a  es  of  dtsagreement  the  .natter  went  through  the  regular  procedure  of  refer" 
ence  to  a  jo.nt  conference  committee  and  then  to  the  firm  which,  in  the  great 
majority  of  instances,  approved  the  compromise  arrived  at  by  the  joint  con 
ference  comm.ttee.  ■' 

On  January  29,  1917,  an  increase  of  10  per  cent,  was  granted  to  employees 
with  a  continuous  record  of  service  of  one  year  or  more,  and  of  5  2  cent 
to  those  in  service  less  than  one  year.     On  June  20,   1917,  an  additional  all- 
round  .ncrease  of  5  per  cent,  was  given.  -<aainonai  all- 

In  the  early  part  of  December,  1917,  the  representatives  of  the  emnlovees 
.n  view  of  the  still  mounting  cost  of  living,  submitted  a  demand  for  an  add.rnai 

156 


^    it 


«'       ^« 


< 


all-round  wage  increase  of  10  per  cent.*  The  matter  was  referred  to  the 
senate,  where  it  was  discussed  at  great  length.  The  opinion  prevailing  in  the 
senate  was  "that  inasmuch  as  it  would  not  be  right  to  ever  cut  wages,  it  might 
be  unwise  to  grant  increase  after  increase,  as  the  cost  of  living  rises,  if  such 
raises  are  made  permanent,  *  *  *  but  that  temporary  raises  as  long  as  this 
high  cost  of  living  remains  on  the  same  level,  or  goes  up,  as  necessary.  In 
view  of  the  difference  in  the  viewpoints  of  the  house  and  the  senate  the  subject 
was  referred  to  a  joint  committee  which  was  instructed  to  work  out  some 
equitable  method  for  the  adjustment  of  wages  to  the  rising  cost  of  living.  The 
action  of  this  committee  was  announced  on  January  9,  1918.  It  suggested  that 
periodic  (monthly)  changes  in  wages  be  made  in  accordance  with  the  changes 
in  the  prices  of  commodities.  A  resolution  to  this  effect  was  passed  and  subse- 
quently approved  by  the  firm.  In  accordance  with  this  resolution,  the  company 
on  January  23  made  the  following  announcement : 

The  company  believes  there  is  justice  in  the  suggestion  that  the  wages 
of  the  employees  be  readjusted  in  accordance  with  the  higher  cost  of  living. 
It  wishes  to  meet  the  suggestion  by  paying  a  separate  high-cost-of -living 
envelope  to  each  employee  once  a  month.  This  envelope  will  contain  an 
amount  of  money  which  will  represent  the  average  increased  cost  of  living 
to  each  employee. 

This  amount  will  be  figured  by  using  Bradstreet's  index  figures  as  a 
basis.  These  index  figures  represent  an  average  of  the  prices  of  96  articles 
used  in  everyday  life.  As  the  prices  change,  these  index  figures  change, 
so  that  they  are  a  fair  measure  of  the  increase  in  the  cost  of  living.  These 
figures  have  been  used  by  Bradstreet's  since  1904  and  are  recognized  all 
over  the  United  Sattes  as  being  impartial  and  reliable. 

As  these  monthly  index  figures  are  not  available  until  the  15th  of  the 
month  the  index  figures  of  November  the  1st  will  be  taken  instead  of 
December  1st,  and  this  November  the  1st  figure  will  be  continued  to  be  used 
as  a  basis.  Therefore,  the  high-cost-of -living  envelope  for  December  will 
be  the  percentage  of  difference  between  the  index  figures  of  November  the  1st 
and  December  the  1st.  The  high-cost-of-living  envelope  for  January  will  be 
the  difference  between  November  the  1st  and  January  1st,  and  so  on.  This 
payment  will  be  made  on  the  second  Tuesday  of  every  month. 

The  company  does  not  obligate  itself  to  continue  this  payment  in- 
definitely, and  as  soon  as  circumstances  arise  that  make  this  payment 
unnecessary  or  impossible  to  maintain  the  employees  will  be  advised  through 
the  house  of  representatives  of  this  fact. 

This  new  wage  arranged  was  to  be  retroactive  to  December,  1917,  when  the 
wage  demand  of  the  employees  was  presented.  Since  the  date  of  the  announce- 
ment, the  following  percentages  of  the  regular  earnings  of  the  employees  have 
been  paid  as  cost-of-living  bonuses :  For  the  month  of  December,  1917,  5  per 
cent.;  January,  February,  and  March,  1918,  6  per  cent.;  and  April,  1918,  8  per 
cent. 

^  The  following  is  an  extract  from  the  proceedings  of  the  meeting  of  the  house  of  repre- 
sentatives held  on  Dec.  4,  1917,  at  which  the  demand  for  an  increase  in  wages  was  decided 
upon : 

Mr.  K,  of  the  cutting  department,  then  made  a  motion  that  the  firm  be  asked  to  grant 
a  20  per  cent  increase  in  wages  to  all  employees  because  of  the  great  increase  in  the  cost 
of    living. 

This  did  not  meet  with  favor  from  some  other  members,  and  Mr.  S.  then  made  a 
motion  to  amend  it  to  read   10  per  cent  instead  of  20  per  cent.     The  amendment  was  carried. 

In  the  discussion  which  followed,  hou!?e  members  showed  that  living  expenses  have 
gone  up  since  last  June;  that  they  believed  that  the  firm  was  square  and  therefore  they 
wanted  to  be  scjuare,  too;  that  they  believed  that,  with  the  increased  cost  of  material  and 
overhead  expenses,  20  per  cent  was  too  much  to  ask  for  in  fairness;  but  that,  because  of 
conditions  at  present,  they  considered  it  fair  to  ask  that  the  firm  grant  a  10  per  cent  increase. 

This  motion  to  ask   10  per  cent   increase  was  carried   with  but  3   voting  against  it. 

157 


Appendix  V 


WORKS  COMMITTEES  AND  OTHER  INDUSTRIAL  REPRE 

SENTATION  PLANS  IN  OPERATION  IN  AMERICAN 

ESTABLISHMENTS,  TOGETHER  WITH  OPINIONS 

ON  WORKS  COMMITTEES 

(Chiefly    from    letters    and    other    documents    direct    from    the    various    concerns.) 


Concerns  With  Committees — Experience  Favorable 


THE  ACME  WIRE  COMPANY.  New  Haven,  Conn. 

This  company  has  recently  formed  a  shop  committee  consisting  of  one 
representative  from  each  department  and  one  member  appointed  by  the  manage- 
ment. This  is  one  of  the  committees  for  patriotic  purposes  recommended  by 
the  Secretary  of  the  United  States  Department  of  Labor. 

*'My  own  view  as  to  the  shop  committee  is  that  it  is  the  only  rational  way 
to  obtain  from  a  body  of  workers  as  a  whole,  an  expression  of  their  point 
of  view,  and  that  any  management  making  the  decisions  affecting  the  employees 
who  does  so  without  knowing  their  point  of  view,  is  working  in  a  mental  dark- 
ness, which  is  not  only  dangerous,  but  sure  to  cause  trouble  sooner  or  later.  .  . 
I  know  of  no  other  way  of  obtaining  all  the  facts  concerning  the  labor  problem 
than  by  appealing  to  the  workers  through  such  a  committee,  to  state  the  facts 
in  their  possession." — Mr.  L.  S.  Tyler,  Vice-President. 

AMERICAN  ROLLING  MILLS  COMPANY,  Middletown,  Ohio. 

"The  union  to  which  the  members  of  the  sheet  and  jobbing  mill  department 
belong  is  the  Amalgamated  Association  of  Iron,  Steel  and  Tin  Workers  of 
North  America,  and  the  local  lodge  in  our  plants  has  a  membership  of  about 
750.  We  have  always  gotten  along  exceptionally  well  with  the  members  of 
this  organization,  and  it  has  been  a  source  of  great  satisfaction  to  us  that 
since  the  United  States  got  into  the  great  world  war  the  members  of  this 
organization  have  co-operated  with  us  in  a  most  wonderful  way  and  have  done 
everything  in  their  power  to  back  up  the  war  program  of  the  Government. 

"In  1904,  when  the  writer  was  assistant  general  superintendent  of  our  plant, 
and  we  then  had  only  four  sheet  mills  and  the  union  only  a  membership  of 
about  120,  I  asked  the  lodge  to  elect  a  committee  of  seven  of  its  members  to 
co-operate  with  me  in  an  advisory  capacity.  This  plan  has  been  in  operation 
ever  since  and  the  committee  has  at  times  been  a  wonderful  help  in  transmitting 
the  views  of  the  management  to  the  men,  and  I  believe  that  it  has  been  very 
largely  responsible  for  the  fact  that  we  have  not  only  never  had  a  strike,  but 
no  situation  has  even  approached  such  a  serious  point  as  to  lead  us  to  believe 
that  there  would  be  a  strike. 

158 


\ 


^A 


^\ 


"Where  the  men  arc  organized  I  think  this  plan  can  be  operated  very 
successfully,  but  where  the  men  do  not  belong  to  an  organization  and  are  not 
responsible  to  an  organization  made  up  of  their  fellow-workmen,  I  doubt  the 
success  of  the  committee  plan  as  a  regular  policy.  The  success  of  a  committee 
scheme  depends  almost  entirely  upon  the  personnel  of  the  committee  and  the 
personality  of  the  individual  or  individuals  who  represent  the  company  in 
conferences  with  the  committees. 

"The  writer  has  given  the  majority  of  his  time  during  the  past  several 
years  to  handling  the  problems  of  organization  of  our  plants,  and  has  used 
every  opportunity  that  has  presented  itself  to  get  committees  of  the  workmen 
to  assume  responsibility  and  to  assist  in  an  advisory  capacity. 

"I  have  seen  one  superintendent  attempt  to  work  the  committee  plan  and 
utterly  fail,  while  on  the  other  hand  I  have  watched  with  great  satisfaction  the 
excellent  results  secured  by  another  superintendent  in  another  department 
through  the  operation  of  the  committee  plan.  The  reason  for  the  failure  in 
one  case  and  success  in  the  other  was  entirely  because  one  did  not  understand 
and  the  other  did  understand  the  workers'  psychology. 

"There  is  no  doubt  in  my  mind  but  that  eventually  industry  is  going  to 
see  that  it  is  very  much  to  its  best  interests  to  standardize  wages  as  far  as 
possible,  and  that  plants  will  see  that  they  must  secure  a  differential  in  cost 
as  between  plants  through  more  efficient  methods,  and  not  because  they  are  able 
to  hire  their  men  at  a  lower  rate  than  the  other  plant.  I  think  this  will  naturally 
lead  to  a  consideration  of  wage  matters  and  working  conditions  by  committees 
of  the  men  and  management. 

"I  would  not  hesitate  for  a  moment  to  recommend  the  establishment  of 
such  a  plan  as  a  policy  of  co-operative  action  between  employers'  representatives 
and  representatives  of  employees  on  matters  of  mutual  interest,  provided  that 
the  employees'  committee  in  each  instance  could  be  made  to  see  that  their  work 
was  not  that  of  a  grievance  committee,  but  that  they  were  appointed  for  the 
purpose  of  considering,  in  a  co-operative  spirit,  all  matters  of  mutual  interest. 
I  have  seen  the  committee  plan  fail  miserably  because  the  workers'  representa- 
tives considered  that  their  one  and  only  job  was  to  continually  kick  for  more 
wages  and  shorter  hours,  regardless  of  the  consequences  to  the  individual 
establishment."— Mr.  Charles  R.  Hook,  Vice-President. 

THE  BROWNING  COMPANY,  Locomotive  Cranes,  Cleveland,  Ohio. 

Experience'-— *l  feel  as  though  I  were  merely  on  the  threshold  of  getting 
at  a  satisfactory  solution  of  the  problems  ahead  of  us,  therefore,  really  should 
not  speak  to  any  one  with  great  conviction  as  to  the  ultimate  outcome  of  my 
schemes;  however,  certainly  the  men's  meetings,  started  about  a  year  ago,  have 
done  no  harm  and  I  feel  they  are  doing  a  great  good.  The  men  certainly  would 
not  give  them  up  and  no  meeting  occurs  without  some  constructive  thought 
developing. 

"The  meetings  started  with  the  enclosed  notice.  We  have  since  increased 
them  to  two  a  month,  the  first  and  third  Monday  afternoon  at  three  o'clock. 
Representatives  of  both  the  day  and  night  forces,  one  man  from  each  depart- 
ment, meet  in  my  office  with  the  superintendent,  no  foremen  present.  We  talk 
of  everything  and  sometimes  nothing  of  interest  develops.  I  have  sat  in  several 
directors'  meetings  that  were  just  as  uninstructive. 

"Since  last  June  when  I  announced  our  profit-sharing  plan,  a  copy  of  which 
is  herewith  enclosed,  I   find  myself   in  a  much  better  position  to   saturate  the 

159 


nien  with  the  idea  of  loyalty  to  the  property  owners,  because  under  our  profit- 
sharing  plan  the  men  are  geuinely  interested  in  the  success  of  the  company, 
whereas,  before,  whenever  I  preached  to  them  in  their  meetings  they  must  have 
said  -that  is  all  very  fine,  but  what  do  we  gain."  The  election  of  representatives 
to  our  men's  meeting  is  so  arranged  that  there  are  some  new  men  in  every 
meeting.  This  gives  every  man  in  every  department  a  chance  to  be  heard  in 
about  a  year  and  a  half."— Mr.  Sheldon  Gary,  President. 

EMPLOVEHS'     MEETING 

"On  Monday.  November  5th,  1917.  we  want  one  man  from  each  of  our 
seventeen  departments  of  the  entire  shop,  day  and  night  force,  to  come  together 
at  3  o'clock  in  the  sales  manager's  of?ice. 

'•Aside  from  your  representatives,  Mr.  Gary  and  Mr.  Stalley  will  be  present. 

"You  are  to  make  your  own  selection  as  to  representatives. 

"Each  month  a  different  man  can  be  selected,  if  you  so  desire. 

"Minutes  of  the  meetings  will  be  typewritten  and  posted  on  the  bulletin 
board  to  inform  each  one  of  you  all  of  important  and  interesting  facts  developed 
by  an  open  talk  about  your  job  and  how  you  can  strengthen  your  condition  and 
that  of  the  company  for  our  mutual  benefit."-THE  Browning  Gompany 
{bheldon  Gary,  President). 

November  25.  Mr.  Gary  gave  the  following  additional  information  in  regard 
to  the  committee  : 

"We  have  had  several  meetings  since  I  wrote  you  and  if  anything.  I  think 
they  are  getting  more  helpful.  This  is  due,  I  believe,  to  the  fact  that  our  profit- 
sharing  scheme  is  soaking  in.  I  get  this  from  many  different  angles  and  many 
of  the  men  have  stated  to  me  their  appreciation  of  the  profit-sharing  check 
and  have  also  stated  that  they  have  noticed  that  there  is  not  as  much  waste  of 
material  and  time  around  the  shop.  I  have  no  way  of  verifying  this  as  yet  but 
do  not  at  all  doubt  that  a  large  percentage  of  the  men  are  taking  much  more 
interest  m  their  work,  because  they  have  a  belief  that  by  doing  so  they  will 
make  more  money. 

"When  all  is  said  and  done  that  one  feature  of  making  more  money  is  the 
essential  for  the  property  owner  to  keep  in  mind,  and  it  is  just  a  question  of 
how  that  extra  money  is  distributed  that  is  of  prime  importance." 

BETHLEHEM   SHIPBUILDING  GORPORATION,   LTD..   Sparrow's   Point 
Plant. 

July  25,  1918  (Final  Gopy) 

REPRESENTATION    OF    EMPLOYEES 

To  THE  Employees  of  the  Bethlehem  Shipbuh^ding  Gorporation,  Ltd. 
Sparrow's  Point  Plant: 

On  June  11,  1918.  the  Gompany  received  a  signed  petition  from  employees 
requesting  authorization  to  elect  from  their  number  Representatives  to  deal  and 
co-operate  with  the  Management  in  carrying  out  the  present  shipbuilding  pro- 
gram, and  to  facilitate  ways  and  means  for  the  ready  adjustment  of  all  matters 
arising  for  settlement. 

The  Company  considered  the  proposal  and  decided,  in  view  of  the  helpful 
spirit   evidenced   by   the   employees,   to   accept   the   suggestion,   and   accordingly 

160 


I 


> 


prepared   the   attached   plan   embodying   all   of   the    features   asked   for   by   the 
petitioners. 

In  order  that  the  plan  approved  by  the  Gompany  would  have  the  support 
and  co-operation  of  all  employees,  a  general  meeting  of  Department  Repre- 
sentatives was  called  on  Thursday,  July  25,  when  the  plan  was  explained  and 
accepted. 

The  following  employees  were  present  at  the  conference:  (Here  follows 
list.)  ^. 


Representation  of  Employees 


Article  I 
Object 

The  objects  in  inaugurating  Representation  of  Employees  are: 

(a)  To  co-operate  with  the  Government  of  the  United  States  in  its  policy 
to  insure  continuous  and  uninterrupted  service  in  shipbuilding. 

{b)  To  promote  and  maintain  just  and  harmonious  relations  between  the 
Gompany  and  its  employees. 

{c)   To  expedite  the  settlement  of  any  matters  requiring  adjustment. 

{d)  To  further  efficiency  and  production  and  improve  the  general  working 
conditions  of  the  Plant. 

Article  II 
Basis  of  Representation 

Employees  shall  be  entitled  to  elect  from  among  their  number  duly  author- 
ized Representatives  on  the  basis  of  representation  by  trades  and  departments 
as  herein  set  forth: 

(a)  For  each  department  wath  less  than  300  employees,  one  Representative. 

(b)  For  each  department  with  from  300  to   1,0(X)  employees,  two   Repre- 

sentatives. 

(c)  In  a  department  of  over  1,000  employees,  one  Representative  for  every 

500  employees. 

2.  In  the  following  departments  which  have  more  than  one  Representative 
there  shall  be  elected  one  Representative  for  each  of  the  trades  as  indicated : 

S  Department:    (1)  Jliveters,  (2)  Bolters,  (3)  Ghippers  and  Gaulkers,  (4) 

Drillers,  (5)  Reamers,  (6)  Fitters,  and  (7)  Erectors. 
T  Department:    (1)  Loftsmen,  (2)  Plate  and  Shape  Yard,  (3)   Shopmen. 
H  Department:     (1)   Wood  Gaulkers,   (2)   Ship  Garpenters. 
D  Department:    (1)   Coppersmiths,  (2)  Plumbers  and  Pipe  Fitters. 

The  basis  of  election  as  herein  provided  is  tentative  only  and  may  be 
modified  later  on  by  joint  consent  of  the  Management  and  Representatives.  It 
has  been  framed  with  regard  to  existing  organizations  within  the  industry,  and 
will,  it  is  believed,  prove  generally  satisfactory.  In  such  matters  experience 
alone  is  the  only  sure  guide. 

For  the  first  election  the  quota  of  Representatives,  which  is  based  on  the 
distribution  of  employees  by  departments  as  of  June  15,  shall  be  as  follows: 

161 


DEPARTMENT 

NUMBER  OF   EMPLOYEES 

REPRESENTATIVES 

s 

3259 

7 

T 

824 

3 

M 

584 

2 

Y 

490 

2 

H 

335 

2 

D 

324 

2 

Q 

274 

c 

271 

N 

228 

B 

220 

L 

195 

P 

165 

J 

151 

E 

134 

R 

96 

W 

54 

O 

45 

Z 

14 

A 

300 

Article  III 
Term  of  Office 

Election  of  Representatives  shall  be  held  semi-annually.  One-half  the 
number  of  Representatives  shall  be  elected  at  each  semi-annual  election.  Repre- 
sentatives shall  hold  office  for  one  year. 

Provided,  however,  That  at  the  first  election  the  full  number  of  Representa- 
tives shall  be  chosen ;  and 

Provided  further,  That  prior  to  the  date  fixed  for  the  semi-annual  election 
following  the  first  election  one-half  of  the  Representatives  chosen  at  the  first 
election  shall  he  selected  for  retirement  in  such  manner  as  may  be  determined 
by  the  majority  vote  of  the  Representatives. 

Representatives  whose  term  of  office  has  expired,  or  who  may  have  been 
retired  as  herein  provided,  shall  be  eligible  for  re-election. 

The  employee  receiving  the  second  highest  number  of  votes  in  the  depart- 
ment in  which  he  is  a  candidate  shall  be  the  alternate  Representative  and  will 
act  only  in  case  of  the  absence  of  the  regular  Representative. 

Article  IV 
Recall  and  Vacancies 

Any  Representative  shall  be  recalled  on  written  request  of  the  majority  of 
the  employees  of  a  department.  A  vacancy  occurring  from  any  cause  shall  be 
filled  by  a  special  election  to  be  conducted  forthwith  in  a  manner  similar  to  that 
of  the  general  election. 

Article  V 
Right  to  Vote 

The  right  to  nominate  and  to  vote  for  Representatives  shall  be  restricted  to 
employees  who  have  been  two  months  in  the  service  of  the  Company  prior  to  the 
dates  fixed  for  Nomination  and  Election  respectively. 

Provided,  however,  That  in  the  case  of  the  first  election  any  employee  who 
has  been  in  the  service  of  the  Company  for  one  month  prior  to  the  date  fixed 
for  the  Nomination  of  Representatives  shall  be  permitted  to  vote. 

162 


•     \ 


k     ' 


<'\  > 


•     Article  VI 

Nomination  and  Election   , 

(a)  Nomination  and  election  shall  be  by  sealed  ballot. 

(b)  Balloting  shall  be  controlled  by  tellers.     For  each  Representative  to  be 

elected  there  shall  be  three  (3)  tellers,  two  of  whom  shall' be  named 
by  the  employees'  Representatives,  and  one  by  the  Management.  In 
the  case  of  the  first  election  the  tellers  for  the  employees  shall  be 
chosen  by  a  committee  representative  of  the  employees  of  each 
department. 

(c)  Representatives  shall  be  so  nominated  and  elected  that  representation 

by  departments  and  by  trades  as  herein  above  specified  shall  be 
assured. 

(d)  Balloting  for  Nomination  of  Representatives  shall  be  held  on  a  Friday, 

and  election  of  Representatives  on  the  Tuesday  following.  Except 
in  the  case  of  the  first  election  provided  for  as  above,  the  day  of 
nomination  shall  be  the  second  Friday  in  the  months  of  January 
and  July,  respectively,  unless  otherwise  determined  by  joint  consent 
of  the  Representatives  and  the   Management. 

(e)  On  the  day  of  nomination  each  employee  qualified  to  nominate  shall  be 

furnished  with  a  blank  ballot  on  which  he  shall  specify  two  names 
as  his  choice  to  represent  his  trade  in  the  department  in  which  he 
is  employed. 

(/)  From  the  names  as  specified  (in  e)  the  tellers  shall,  from  each  trade, 
select  for  each  Representative  to  be  appointed  the  three  names 
oftenest  specified.  The  employees  whose  names  are  thus  selected 
shall  be  the  candidates  for  election  as  Representatives. 

(g)  On  the  day  of  election  (the  Tuesday  following  the  nomination)  each 
employee  qualified  to  vote  shall  be  furnished  with  a  ballot  on  which 
shall  be  printed  the  names  of  the  persons  nominated  to  represent 
each  of  the  trades  in  the  department  in  which  he  works.  On  this 
ballot  each  employee  shall  cast  his  vote  for  Representatives  accord- 
ing to  trades  as  herein  set  forth,  to  the  number  of  Representatives 
to  which  his  department  is  entitled.  Having  regard  to  the  different 
trades  in  each  department,  the  persons  receiving  the  highest  num- 
ber of  votes  shall  be  elected. 

Article  VII 
Organisation 

(a)  After  each  semi-annual  election  the  Representatives  shall  immediately 

meet  for  the  purpose  of  electing  a  Chairman  and  Secretary  from 
among  their  number,  and  for  selecting  Committees. 

(b)  The  following  Committees  shall  be  appointed  by  the  Representatives: 

1.  Wages  and  Piece  Work  Schedules. 

2.  Working  Conditions  and  Hours. 

3.  Health,   Safety  and   Sanitation. 

4.  Housing  and  Living  Conditions. 

5.  Transportation. 

6.  Education  and  Publications. 

7.  Entertainment  and  Recreation. 

163 


Each  Committee  shall  be  composed  of  five  (5)  members,  three  (3),  includ- 
ing its  Chairman,  to  be  appointed  from  among  the  Representatives, 
and  two  (2)  from  among  employees  other  than  Representatives. 
No.  Representative  shall  serve  on  more  than  one  Committee. 

By  joint  consent  of  the  Representatives  and  the  Management  the  member- 
ship of  any  Committee  may  be  reduced  or  increased,  or  any  two  or 
more  Committees  may  be  combined  for  purposes  of  joint  conference 
with  officials  of  the  Company  or  for  any  other  reason. 

(r)  The  Company  shall  provide  a  suitable  place  for  meetings  of  Repre- 
sentatives and  Committees  and  for  joint  conferences  with  the 
Management,  and  upon  request  of  the  Representatives  shall  pro- 
vide such  clerical  assistance  as  may  be  required. 

Article  VIII 
Meetings 

Regular  Meetings  of  the  Representatives  and  also  of  each  of  the  Committees 
shall  be  held  at  least  once  every  month. 

The  regular  meetings  of  the  Representatives  shall  be  held  at  3  P.  M.  on  the 
first  Wednesday  of  each  month.  The  regular  meetings  of  the  Committees  shall 
be  held  at  the  same  hour  during  the  intervening  weeks  on  dates  to  be  arranged 
between  the  Representatives  and  the  Management. 

Special  Meetings  of  the  Representatives  and  of  the  Connuittees  may  be  held 
as  occasion  may  require  on  the  joint  approval  of  the  officers  of  the  Repre- 
sentatives and  the  Management. 

P^or  time  spent  during  working  hours.  Representatives  or  members  of  Com- 
mittees necessarily  occupied  at  regular  meetings  or  at  special  meetings  or  con- 
ferences jointly  approved  shall  be  paid  by  the  Company  at  their  regular  rate 
of  pay.  Expenses  incident  to  the  Representation  of  Employees  authorized  and 
approved  jointly  by  the  Representatives  and  the  Management  will  be  paid  by 
the  Company. 

Article  IX 
Joint  Committees 

On  alternate  months  the  Committees  shall  meet  as  Joint  Committees  with 
Company  officials  to  be  named  by  the  Management.  On  such  Joint  Committees 
the  Company  officials  may  equal,  but  shall  not  exceed  in  number,  the  employees' 
Representatives. 

Article  X 
Matters  for  Adjustment 

Any  matter  requiring  adjustment  shall  in  the  first  instance  be  referred  by 
employees  to  the  Foreman,  and  failing  satisfactory  adjustment  shall  then  be 
referred  to  the  Superintendent.  If  satisfactory  adjustment  is  not  obtained  in 
this  way,  employees,  either  in  person  or  through  one  or  more  of  the  Repre- 
sentatives of  their  department,  may  take  the  matter  up  for  adjustment  with  the 
Head  of  the  Service  Department.  Should  the  Head  of  the  Service  Department 
fail  to  effect  an  adjustment  within  a  reasonable  time,  the  matter  may  be  brought 
through  one  of  their  number  to  the  attention  of  the  Representatives  assembled 
at  a  regular  or  special  meeting,  and  if  the  meeting  is  of  the  opinion  that  it 
should  be  further  considered  the  Representatives  shall  notify  the  Management 
accordingly  and  shall  name  two  of  their  number  to  act  with  the  Chairman  of 
the  Representatives  as  members  of  a  Joint  Committee  of  x\djustment  to  which 

164 


'- 


the  matter  shall  be  referred.  The  notification  from  the  Representatives  to  the 
Management  as  herein  provided  shall  be  in  writing,  and  shall  specify  the  facts 
which  in  the  opinion  of  the  Representatives  constitute  the  matter  requiring 
adjustment  and  warrant  its  presentation  to  the  Joint  Committee  of  Adjustment. 
The  Joint  Committee  of  Adjustment  shall  be  composed  of  the  three  Repre- 
sentatives thus  selected  and  an  equal  number  of  Company  officials  to  be  named 
as  Representatives  of  the  Management,  within  three  days  of  receipt  by  the 
Management  of  the  names  of  the  Representatives  selected.  The  Joint  Com- 
mittee of  adjustment  thus  formed  shall  immediately  convene  and  endeavor  to 
adjudicate  the  matter,  and  shall  be  at  liberty  to  adopt  any  course  of  procedure 
which  in  its  judgment  is  best  calculated  satisfactorily  to  effect  this  end. 

Article  XI 

Matters  of  Interest 

Representatives  are  at  liberty  at  all  times  to  discuss  with  the  Head  of  the 
Service  Department,  either  upon  their  own  initiative  or  at  the  request  of  any 
employee,  any  subject  of  interest  in  the  operation  of  the  shipyard  or  of  concern 
to  the  employees. 

To  insure  the  discussion  of  such  questions,  and  the  maintenance  of  just 
and  harmonious  relations,  the  Head  of  the  Service  Department  shall  interview 
the  Representatives  of  each  department  at  least  once  a  month  to  find  out 
whether  there  are  any  subjects  meriting  discussion  or  matters  requiring 
consideration. 

Article  XII 
Publicity 

A  Monthly  Bulletin  shall  be  published  as  a  means  of  communication  be- 
tween the  Management,  the  employees,  the  stockholders  and  the  public  on  matters 
of  mutual  interest  and  of  special  concern  to  employees. 

A  Bulletin  Board  shall  be  located  in  a  convenient  place  in  the  Plant  for 
the  posting  by  the  Service  Department  of  matters  of  interest  to  employees. 

Article  XIII 
MembersJiip  in  Organizations 

Representation  of  employees  as  herein  provided  for  shall  not  in  any  way 
abridge  the  right  of  any  employee  to  membership  in  any  organization. 

BETHLEHEM  STEEL  CORPORATION,  Bethlehem,  Pa. 

PLAN   OF   employee   REPRESENTATION 
(From   Iron  Age,   October   24,    1918.) 


> 


The  full  text  of  the  pamphlet  issued  by  the  company  outlining  its  new  plan 
is  as  follows : 

I. — Representation 
L     Representation  shall  be  on  the  following  basis: 

Plants  employing  under  1,500  employees:  One  representative  for  each  100 
employees. 

Plants  employing  1,500  to  10,000  employees:  One  representative  for  each 
200  employees. 

Plants  employing  over  10,000  employees:  One  representative  for  each  300 
employees;  provided,  however,  that  in  no  case  there  shall  be  less  than  10 
representatives. 

165 


•I 


Such  adjustments  as  may  be  necessary  to  meet  special  cases  shall  be  made. 

2.  For  the  purpose  of  applying  the  unit  of  representation,  the  plants  should 
be  subdivided  according  to  departments  and  natural  subdivisions.  Wherever 
It  is  necessary  to  group  a  number  of  small  departments  in  order  to  complete  a 
umt  of  representation,  regard  shall  be  had  to  logical  groupings  and  location. 

3.  Adjustments  in  units  of  representation  shall  be  made  in  accordance  with 
the  recommendations  of  the  Committee  on  Rules. 

II. — Terms  of  Representatives 

1.  Representatives  shall  be  elected  for  a  term  of  one  year,  and  shall  be 
eligible  for  re-election. 

2.  A  representative  may  be  recalled  upon  the  approval  by  the  Committee 
on  Rules  of  a  petition  signed  by  two-thirds  of  the  voters  in  his  department. 

3.  A  representative  shall  be  deemed  to  have  vacated  office  upon  severance 
of  his  relations  with  the  company  or  upon  his  appointment  to  such  a  regular 
position  as  would  bring  him  within  the  meaning  of  Paragraph  3,  Section  3, 
entitled  "Qualitications  of  Representatives  and  Voters." 

4.  Vacancies  in  the  office  of  representative  may  be  filled,  in  the  discretion 
of  the  Committee  on  Rules,  by  special  elections  conducted  in  the  same  manner 
as  the  general  elections. 

III.— Qualifications  of  Representatives  and  Voters 

1.  Any  employee  who  has  been  on  the  company's  pay  rolls  for  a  period 
of  SIX  months  prior  to  nominations,  who  is  21  years  of  age  and  over,  and  who 
IS  an  American  citizen  or  has  taken  out  his  first  papers,  shall  be  considered 
qualified  for  nomination  and  election  as  a  representative. 

2.  All  employees  who  have  been  on  the  company's  pay  rolls  for  a  period 
of  at  least  sixty  (60)  days  prior  to  the  date  fixed  for  nominations,  and  who 
are  18  years  of  age  or  over  shall  be  entitled  to  vote;  provided,  however  that 
in  the  case  of  the  first  elections,  thirty  (30)  days  on  the  company's  pay'  rolls 
shall  suffice. 

3.  Company  officials  and  persons  having  the  right  to  hire  or  discharge  shall 
not  be  eligible  as  representatives  or  qualified  to  vote  for  representatives. 

IV.— First  Nominations  and  Elections 

1.  Each  division  or  department  shall  select  a  committee  of  the  workmen 
who  shall  conduct  the  first  nominations  and  elections  in  the  manner  prescribed 
herein. 

2.  At  the  first  elections  the  full  number  of  representatives  shall  be  elected, 
one-half  of  whom  shall  serve  until  the  second  stated  semi-annual  election  there- 
after, and  one-half  of  whom  shall  retire  at  the  first  stated  semi-annual  election. 
The  method  of  retirement  of  representatives  shall  be  arranged  by  the  Joint 
Committee  on  Rules. 

v.— Nominations  and  Elections  After  the  First  Nominations  and  Elections 

1.  Nominations  and  elections  shall  be  held  semi-annually,  in  the  months  of 
October  and  April  respectively. 

2.  Nominations  shall  be  held  on  the  second  Monday,  and  elections  on  the 
following  Friday,  of  the  months  named.  In  the  event  of  either  of  these  days 
being  a  holiday,  the  day  immediately  following  shall  be  substituted. 

166 


Ik. 


^i 


*         w 


I 


3.  One-half  of  the  total  number  of  representatives  shall  be  chosen  at  each 
semi-annual  election. 

4.  The  nominations  and  elections  (after  the  first  nominations  and  elections) 
shall  be  conducted  by  the  employees  themselves,  in  accordance  with  rules  and 
regulations  prescribed  by  the  Committee  on  Rules,  with  only  such  assistance 
from  the  management  as  may  be  required  by  the  Committee  on  Rules. 

5.  There  shall  be  three  persons  nominated  for  every  person  to  be  elected. 

6.  Nominations  and  elections  shall  be  by  secret  ballot,  and  so  conducted 
as  to  avoid  undue  influence  or  interference  with  voters  in  any  manner  whatso- 
ever, and  to  prevent  any  fraud  in  the  counting  of  ballots. 

7.  On  the  day  of  nominations,  each  duly  qualified  voter  shall  be  furnished 
with  a  ballot  stating  the  number  of  persons  for  whom  he  is  entitled  to  vote  on 
which  he  shall  write  the  name  of  the  persons  in  his  department  whom  he  desires 
to  nominate  as  representatives. 

8  A  voter  may  place  in  nomination  twice  the  number  of  representatives 
to  which  his  department  is  entitled. 

9  If  on  any  ballot  the  same  name  is  placed  in  nomination  more  than  once 
it  shall  be  counted  but  once.  * 

10.  Should  the  number  of  persons  nominated  on  any  ballot  exceed  the  per- 
mitted number  as  stated  on  the  ballot,  the  ballot  shall  be  void. 

11.  Those  who  have  received  the  largest  number  of  votes  up  to  three  times 
the  number  of  representatives  to  be  elected  shall  be  declared  nominated,  and 
shall  be  candidates  for  election. 

12.  On  the  day  of  elections,  each  duly  qualified  voter  shall  be  furnished 
by  the  Committee  on  Rules  with  a  ballot  on  which  the  names  of  the  candidates 
shall  be  printed  in  alphabetical  order.  The  voter  shall  indicate  his  preference 
by  placing  a  cross  (X)  opposite  the  names  of  the  candidates  of  his  choice. 

13.  Candidates  to  the  number  of  representatives  to  which  a  department  or 
subdivision  is  entitled  may  be  voted  for  and  this  number  shall  be  stated  on  the 
ballot.    If  this  number  is  exceeded,  the  ballot  shall  be  void. 

14.  Each  voter  shall  deposit  his  own  ballot  in  a  box  provided  for  the 
purpose  by  the  Committee  on  Rules,  and  the  ballots  shall  be  counted  under  the 
direction  and  supervision  of  said  committee.  The  candidates  receiving  the 
highest  number  of  votes  shall  be  declared  elected. 

15.  In  the  event  of  a  tie,  seniority  in  the  company's  employment  shall 
determine  the  choice. 

16.  In  the  event  of  a  controversy  arising  concerning  any  nomination  or 
election,  it  shall  be  referred  to  and  decided  by  the  Committee  on  Rules. 

17.  The  Committee  on  Rules  may  make  such  provision  as  they  may  con- 

hirballo?''^''''  ^'''  ^''''^'"^  ^"^  ''''^'''  ^^^"^  ""^^  '°  "'"^"^'^^  ^"  P'^P"'^^  "^^'^^"^ 

VI.— Management's  Representative 
The  company  shall  appoint  a  management's  representative. 
The  management's  representative  shall  keep  the  management  in  touch  with 
the    representatives,   and    represent   the   management    in   negotiations    with    the 
representatives,   their  officers   and  committees.     He   shall   respond   promptly   to 
any  request  from  representatives,  and  shall  interview  all  of  the  representatives 
from  time  to  time,  but  not  less  frequently  than  once  every  month,  with  reference 
to  matters  of  concern  to  employees,  and  report  the  result  of  such  interviews  to 
the  management. 

167 


VII. — Co  M  M ITTEES 

1.  After  each  semi-annual  election,  the  representatives  shall  immediately 
meet  for  the  purpose  of  electing  a  chairman,  secretary,  a  General  Committee, 
and  Committee  on  Rules,  and  for  selecting  members  of  such  other  committees 
as  are  found  necessary  by  the  Committee  on  Rules  for  the  consideration  of  the 
following  subjects: 

Rules. 

Ways  and  Means. 

Safety  and  Prevention  of  Accident. 

Practice,  Methods  and  Economy. 

Employees'  Transportation. 

Wages,  Piece  Work,  Bonus  and  Tonnage  Schedules. 

Employment  and  Working  Conditions. 

Housing,  Domestic  Economies  and  Living  Conditions. 

Health  and  Works  Sanitation. 

Education  and  Publications. 

Pensions  and  Relief. 

Athletics  and  Recreation. 

Continuous  Employment  and  Condition  of  Industry, 

2.  There  shall  be  a  General  Committee  to  consider  all  matters  not  falling 
within  the  scope  of  any  other  committees  herein  provided  for  and  the  chairman 
and  secretary  of  the  representatives  shall  be  members  of  the  General  Committee. 
This  committee  when  jointly  composed  shall  act  as  a  Committee  on  Appeals. 

3.  Each  committee  shall  be  composed  of  five  members,  and  shall  appoint 
its  own  chairman  and  secretary. 

4.  Vacancies  on  committees  shall  be  filled  at  a  regular  meeting  of  the 
representatives. 

5.  Joint  committees  shall  consist  of  the  committees  of  the  employees' 
representatives  with  the  addition  of  the  company's  representatives  named  by 
the  management,  who  may  equal  but  shall  not  exceed  in  number  the  employees' 
representatives. 

6.  The  joint  committees  shall  select  their  own  officers  and  arrange  their 
own  procedure,  subject  to  appeal,  in  case  of  controversy,  to  the  Joint  Committee 
on  Rules. 

7.  Wherever  the  word  "committee"  is  used  throughout  this  instrument,  it 
shall  mean  the  separate  Committee  of  Employees'  Representatives  unless  a  "joint 
committee"  is  specified. 

Vn I.— Committee  Meetings 

1.  Regular  meetings  of  committees  shall  be  held  once  a  month. 

2.  On  alternate  months,  the  committees  shall  meet  as  joint  committees. 

3.  Committees  shall  meet  between  the  hours  of  3  and  5  in  the  afternoon, 
unless  otherwise  arranged  for  on  joint  approval  of  the  chairman  of  the  employees' 
representatives  and  the  management's  representative. 

4.  Special  meetings  of  committees  and  of  joint  committees  may  be  held 
as  occasion  may  require,  on  approval  of  the  chairman  of  the  employees'  repre- 
sentatives and  the  management's   representative. 

5.  For  time  necessarily  occupied  in  actual  attendance  at  regular  meetings 
or  at  special  meetings  of  conferences  jointly  approved,  representatives  shall 
receive  from  the  company  payment  commensurate  with  their  average  earnings. 

168 


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4 


I  4» 


r        9 


6.  Representatives  shall  have  the  right  to  appear  before  and  be  heard 
by  a  committee  on  any  matter  of  concern  to  the  employees  of  the  department 
they  represent. 

7.  A  committee,  when  concerned  with  matters  of  special  interest  to  any 
particular  department  or  class  of  employees,  shall  have  the  right  of  inviting  into 
conference  the  representatives  of  the  employees  and  of  the  management  likely 
to  be  specially  interested  in  such  matters. 

8.  Any  matter  may  be  referred  by  the  management  through  the  manage- 
ment's representative  to  any  committee  for  consideration  and  report,  and  any 
matter  may  be  presented  by  a  committee  to  the  management  through  the  manage- 
ment's representative. 

9.  The  Joint  Committee  on  Rules  shall  arrange  a  suitable  place  for  meet- 
mgs  of  the  representatives,  and  of  the  several  committees  and  joint  committees, 
and  the  company  shall  defray  such  expenses  as  are  necessarily  incident  to  the 
discharge  of  duties  herein  set  forth,  when  approved  by  a  majority  of  said 
committee. 

IX. — Annual   Conference 
An   annual   conference   between   all   of   the   employees*   representatives   and 
representatives  of  the  management  shall  be  held  at  a  time  and  place  determined 
by  the  Joint  Rules  Committee,  who  shall  be  in  charge  of  the  procedure  at  such 
conference. 

X. — Procedure  for  Adjustments 

1.  Any  matter  which  in  the  opinion  of  any  employee  requires  adjustment, 
and  which  such  employee  has  been  unable  to  adjust  with  the  foreman  of  the 
work  on  which  he  is  engaged,  may  be  taken  up  by  such  employee,  either  in 
person  or  through  any  representative  of  his  department. 

First— With  the  superintendent  of  the  department. 

Second— With  the  management's  representative. 

Third— With  one  of  the  superior  officers  of  ^he  company,  who  shall  endeavor 
to  effect  a  settlement,  or  who  may  with  the  approval  of  all  the  parties  refer 
the  matter  to  any  Joint  Committee. 

2.  Unless  a  satisfactory  disposition  of  any  such  matter  has  been  effected 
within  a  reasonable  time,  any  employee  through  his  representative,  or  the 
management  through  the  management's  representative,  may  require  such  matter 
to  be  referred  to  the  General  Joint  Committee  on  Appeals  by  a  request  in 
writing  addressed  to  said  committee,  specifying  in  detail  the  matter  requiring 
adjustment  and  the  reasons  which  warrant  its  consideration  by  said  committee. 
The  General  Joint  Committee  on  Appeals  shall  consider  any  such  matter  with 
reasonable  promptness,  at  a  regular  or  special  meeting,  and  may  adopt  such  means 
as  are  necessary  to  asceratin  the  facts  and  effect  a  settlement. 

3.  If  the  General  Joint  Committee  on  Appeals  fail  to  effect  a  satisfactory 
settlement,  the  president  of  the  company  shall  be  notified  and  the  matter  may 
be  referred,  if  the  president  and  a  majority  of  the  employees'  representatives 
on  the  General  Joint  Committee  agree  to  such  reference,  to  an  arbitrator  or 
arbitrators,  to  be  determined  at  the  time  according  to  the  nature  of  the 
controversy. 

XI. — Guaranteeing  the  Independence  of  Representatives 
It  is  understood  and  agreed  that  each  representative  shall  be  free  to  dis- 
charge his  duties  in  an  independent  manner,  without  fear  that  his  individual 

169 


relations  with  the  company  may  be  affected  in  the  least  degree  by  any  action 
taken  by  him  in  good   faith  in  his   representative  capacity. 

To  insure  to  each  representative  his  right  to  such  independent  action,  he 
shall  have  the  right  to  take  the  question  of  an  alleged  personal  discrimination 
against  him,  on  account  of  his  acts  in  his  representative  capacity,  to  any  of  the 
superior  officers,  to  the  General  Joint  Committee  and  to  the  president  of  the 
company. 

Having  exercised  this  right  in  the  consecutive  order  indicated  and  failing 
a  satisfactory  remedy  within  thirty  days,  a  representative  shall  have  the  further 
right  to  appeal  to  the  State  Department  of  Labor  or  the  Secretary  of  Labor 
of  the  United  States.  The  company  shall  furnish  the  said  Secretary  or  the  said 
State  Department  of  Labor  with  every  facility  for  the  determination  of  the  facts, 
and  the  findings  and  recommendations  of  the  said  Secretary  or  the  State  Depart- 
ment of  Labor  shall  be  final  and  binding. 

XI L — Amendments 

Any  method  of  procedure  hereunder  may  be  amended  at  any  time  by  two- 
thirds  vote  of  the  entire  membership  of  the  Joint  Committee  on  Rules,  or  by 
concurrent  majority  vote  of  the  employees'  representatives  and  of  the  repre- 
sentatives of  the  management  at  an  annual  conference. 

COLORADO  FUEL  &  IRON  COMPANY,  Denver,  Colorado. 

"The  relations  between  the  Colorado  Fuel  and  Iron  Company  and  its  em- 
ployees, numbering  something  like  15,000,  are  based  upon  the  Industrial  Repre- 
sentation Plan  adopted  about  three  years  ago.  The  essential  feature  of  this 
plan  is  direct  dealing  by  the  company  officers  and  representatives  elected  by 
the  workmen.  At  each  mining  property  and  in  each  department  of  the  Minnequa 
Steel  Works  employees  choose  representatives  on  the  basis  of  one  for  every 
150  workmen,  with  a  minimum  of  two  representatives  at  each  property  and  in 
each  department.  These  representatives  are  authorized  to  treat  with  company 
officers  on  all  matters  connected  with  working  and  living  conditions,  including 
wages  and  hours  of  labor. 

"To  further  this  direct  dealing  joint  conferences  are  held  at  the  Minnequa 
Steel  Works  and  in  each  mining  district,  attended  by  the  employees'  repre- 
sentatives and  an  equal  or  smaller  number  of  officials  representing  the  corpora- 
tion. Annual  joint  meetings,  attended  by  all  the  employees'  representatives, 
also  are  held.  At  these  conferences  and  annual  meetings  questions  regarding 
any  phase  of  the  relations  between  the  workmen  and  the  company  are  freely 
discussed  and  if  possible  settled  to  the  satisfaction  of  all  parties. 

"At  the  Minnequa  Steel  Works  and  in  each  of  the  mining  districts  there 
are  four  joint  committees,  composed  of  equal  numbers  of  workmen  and  company 
officials.  These  joint  committees,  the  functions  of  which  are  indicated  by  their 
names,  are  as  follows :  Industrial  Co-operation  and  Conciliation ;  Safety  and 
Accidents;  Sanitation,  Health  and  Housing;  Recreation  and  Education.  Much 
of  the  most  effective  work  under  the  Industrial  Representation  Plan  has  been 
done  by  these  joint  committees.  The  committees  on  Safety  and  Accidents  and 
on  Sanitation,  Health  and  Housing  have  made  systematic  inspections,  particu- 
larly of  the  various  mining  properties,  and  their  recommendations  based  upon 
these  inspections  have  led  to  numerous  valuable  improvements.  In  practically 
every  instance  the  recommendations  of  the  joint  committees  have  been  adopted 
by  the  company  management. 

170 


^ 


■ 


"The  experience  of  almost  three  years  has  convinced  the  officers  of  the  com- 
pany that  the  Industrial  Representation  Plan  furnishes  a  solution  of  most  of 
the  problems  connected  with  the  relations  between  labor  and  capital.  It  has 
been  demonstrated  repeatedly  that  the  representatives  of  the  employees  feel 
their  responsibility  and  do  not  hesitate  to  present  complaints  or  suggestions  in 
behalf  of  their  fellow  workmen.  On  the  other  hand,  it  has  been  found  that  the 
operating  officers  of  the  company  are  ready  to  consider  all  grievances  and 
recommendations  in  good  faith  and  if  possible  arrive  at  agreements  satisfactory 
to  the  workmen." — (Letter  from  Mr,  E,  S.  Cowdrick,  Assistant  to  the  President, 
August  22,  1918.) 

Plan  of  representation  of  employees  of  the  Colorado  Fuel  and  Iron  Com- 
pany, in  the  Company's  Minnequa  Steel  Works. 

Part  I. — Representation  of  Employees 
/.     Divisions. 

For  the  purposes  of  this  Plan,  the  Works  shall  be  divided  into  nine  divisions, 
as  follows: 

DIVISION  SUBDIVISION 

!  Blast  Furnace  Department 
By-product  Coke  Plant 
Bessemer  Department 

Second    Open  Hearth  Department 

Third    Rail  Mill  Department 

20-inch  Mill 

Fourth    )12-inch  Mill 

Bolt  Factory 
Spike  Factory 

40-inch  Mill 
pj£|.j^  ]  14-inch  Mill 

Rod  Mill 
10-inch  Mill 

Sixth   Wire  Department 

'Carpenter   Shop 
Pattern  Shop 
General  Foundry 

Seventh    <^  Blacksmith  Shop 

Machine  Shop 
Boiler  Shop 
Pipe-fitting  Shop 

'Pipe  Foundry 

Roll   Shop 
jScale  Shop 
^        \  Electrical   Shop 

Masons 
^Storehouse 

/Yard 

Ninth <  Transportation 

(  General 

171 


2.  Annual   election   of  employees'  representatives. 

Employees  in  each  division  of  the  Minnequa  Works  shall  annnually  elect 
from  among  their  number  representatives  to  act  on  their  behalf  with  respect 
to  matters  pertaining  to  their  employment,  working  and  living  conditions,  the 
adjustment  of  differences,  and  such  other  matters  of  mutual  concern  and  interest 
as  relations  w^ithin  the  industry  may  determine. 

3.  Time,  place,  and  method  of  calling  annual  election  of  representatives,  and 

persons  entitled  to  participate. 

The  annual  election  of  representatives  shall  be  held  during  the  month  of 
January,  and  the  nomination  of  representatives  shall  be  held  at  least  two  days 
preceding  the  election.  The  nomination  and  election  shall  be  called  by  direction 
of  the  President  of  the  Company.  Notices  of  the  nomination  and  election, 
indicating  the  number  of  representatives  to  be  elected  in  each  division,  shall 
be  publicly  posted  in  each  subdivision  of  the  Works  a  week  in  advance,  and 
shall  state  that  employees  being  wage-earners  in  the  employ  of  the  Company 
at  the  time  of  the  election  and  for  at  least  three  months  immediately  preceding, 
but  not  foremen  or  salaried  employees,  shall  be  entitled  to  vote.  Special  elections 
shall  be  similarly  called  when  removal,  resignation,  or  other  circumstance 
occasions  a  vacancy  in   representation. 

4.  Basis  and  term  of  representation. 

Representation  of  employees  in  each  division  shall  be  on  the  basis  of  one 
representative  to  every  one  hundred  and  fifty  wage-earners,  but  each  division, 
whatever  its  number  of  employees,  shall  be  entitled  to  at  last  two  representa- 
tives. Unless  the  number  of  representatives  to  which  a  division  is  entitled  is 
greater  than  the  number  of  its  subdivisions,  no  two  representatives  shall  be 
nominated  or  elected  from  the  same  subdivision.  Where  the  number  of  em- 
ployees in  any  one  division  exceeds  one  hundred  and  fifty,  or  any  multiple 
thereof,  by  seventy-five  or  more,  an  additional  representative  shall  be  elected. 
The  persons  elected  shall  act  as  the  employees'  representatives  from  the  time 
of  their  election  until  the  next  annual  meeting,  unless  in  the  interval  other 
representatives  may,  as  above  provided,  have  been  elected  to  take  their  places. 

5.  Nomination  and  election  of  representatiies. 

To  facilitate  the  nomination  and  election  of  employees'  representatives, 
and  to  insure  freedom  of  choice,  both  nomination  and  election  shall  be  by 
secret  ballot,  under  conditions  calculated  to  insure  an  impartial  count.  The 
Company  shall  provide  ballot  boxes  and  blank  ballots,  differing  in  form,  for 
purposes  of  nomination  and  election.  Each  employee  entitled  to  vote  shall  be 
given  a  nomination  ballot  on  which  he  shall  write  the  names  of  the  fellow 
wage-earners  in  his  division  whom  he  desires  to  nominate  as  representatives, 
and  deposit  the  nomination  ballot  in  the  ballot  box.  Each  employee  may 
nominate  representatives  to  the  number  to  which  the  division  is  entitled,  and 
of  which  public  notice  has  been  given.  Employees  unable  to  write  may  ask 
any  of  their  fellow  employees  to  write  for  them  on  their  ballots  the  names 
of  the  persons  whom  they  desire  to  nominate ;  but  in  the  event  of  any  nomina- 
tion paper  containing  more  names  than  the  number  of  representatives  to  which 
the  division  is  entitled,  the  paper  shall  not  be  counted.  The  persons — to  the 
number  of  twice  as  many  representatives  as  the  division  is  entitled  to— receiving 
the  highest  number  of  nomination  votes  shall  be  regarded  as  the  duly  nominated 
candidates  for  employees'  representatives,  and  shall  be  voted  upon  as  hereinafter 
provided.     (For  example:    If  a  division  is  entitled  to  two  representatives,  the 

172 


*•  % 


\ 


four  persons  receiving  the  largest  number  of  nomination  votes  shall  be  regarded 
as  the  duly  nominated  candidates.  If  the  division  is  entitled  to  three  repre- 
sentatives, then  the  six  persons  receiving  the  largest  number,  etc.,  etc.) 

6.  Counting  of  nomination  and  election  ballots. 

The  nomination  and  election  of  representatives  shall  be  under  the  general 
supervision  of  the  President's  Industrial  Representative.  In  each  division  a  time- 
keeper appointed  by  the  Company  and  a  wage-earner  designated  by  the  employees' 
representatives  of  that  division  shall  act  as  tellers  for  both  nomination  and 
election,  and  take  charge  of  the  ballot  box  containing  the  nomination  votes,  and, 
with  the  aid  of  the  President's  Industrial  Representative,  they  shall  make  out 
the  list  of  the  duly  nominated  candidates,  which  shall  be  posted  in  each  sub- 
division not  later  than  the  day  preceding  the  election.  On  the  date  designated, 
the  election  of  representatives  shall  be  held  by  secret  ballot,  from  among  the 
number  of  candidates  nominated,  the  same  tellers  having  charge  of  the  balloting, 
and  the  results  of  the  election,  signed  by  the  tellers,  shall  be  posted  in  each 
subdivision  and  forwarded  to  the  President  of  the  Company.  If  dissatisfied 
with  the  count  in  any  division,  as  respects  either  the  nomination  or  election,  any 
twenty-five  employees  in  such  division  who  participated  in  the  election,  may, 
within  twenty-four  hours  after  the  results  of  the  voting  have  been  posted, 
demand  a  recount,  and  for  the  purposes  of  the  recount  the  President's  Industrial 
Representative  shall  select  as  tellers  three  from  the  number  of  those  demanding 
a  recount,  and  himself  assist  in  the  counting,  and  these  four  shall  act,  in  making 
the  recount,  in  the  place  of  the  tellers  previously  chosen.  There  shall  be  no 
appeal  from  this  recount,  except  to  the  President  of  the  Company,  and  such 
appeal  may  be  taken  as  hereinafter  provided,  at  the  request  of  any  twenty-five 
employees  who  participated  in  the  election. 

7.  Appeal  in  regard  to  noniiination  or  election. 

The  tellers  shall  preserve,  properly  sealed,  for  a  period  of  one  week,  both 
the  nomination  and  election  ballots.  Should  an  appeal  be  made  to  the  President 
within  seven  days  in  regard  to  the  validity  of  the  nomination  or  election  in 
any  division,  upon  a  request  in  writing  signed  by  twenty-five  employees  in 
such  division  who  participated  in  the  election,  the  tellers  shall  deliver  the 
ballots  to  the  President  of  the  Company  for  recount.  Should  no  such  request 
be  received  within  that  time,  the  tellers  shall  destroy  the  ballots.  If  after 
considering  the  appeal  the  President  is  of  the  opinion  that  the  nomination  or 
election  has  not  been  fairly  conducted,  he  shall  order  a  new  election  in  the 
division  concerned  at  a  time  to  be  designated  by  him. 

8.  General  proceedings  at  meetings. 

Meetings  of  employees  in  any  division  may  be  held  at  such  times  as  will 
not  interfere  with  operations,  on  the  call  of  the  representatives  of  such  division, 
to  consider  and  make  recommendations  concerning  any  matters  pertaining 
to  their  employment,  working  or  living  conditions,  or  arising  out  of  existing 
industrial  relations,  including  such  as  they  may  desire  to  have  their  repre- 
sentatives discuss  with  the  President  and  officers  of  the  Company  at  the  Joint 
Conferences  of  the  Company's  officers  and  employees,  also  any  matters  referred 
to  them  by  the  President,  other  officers  of  the  Company,  the  Advisory  Board 
on  Social  and  Industrial  Betterment,  or  by  any  of  the  several  Joint  Committees 
appointed  at  the  preceding  annual  Joint  Conferences  of  officials  and  employees 
of  the  Company.  A  record  of  the  proceedings  shall  be  made  by  the  Secretary 
of  the  meeting  and  certified  to  by  the  Chairman,  and  copies  delivered  to  each 
of  the  representatives  of  that  division  and  mailed  to  the  President  of  the 
Company,  to  be  retained  by  them  for  purposes  of  future  reference. 

173 


Part  II. — Joint  Conferences  and  Joint  Committees 
/.     Titne^  place  and  purpose  of  Joint  Conferences. 

Joint  conferences  shall  be  held  at  the  call  of  the  President,  at  places  to 
be  designated  by  him,  not  later  than  three  weeks  following  the  annual  election 
of  representatives,  and  at  intervals  of  not  more  than  four  months  thereafter, 
as  the  operating  officers  of  the  Company,  or  a  majority  of  the  representatives 
of  the  employees  may  find  desirable.  The  purpose  of  these  joint  conferences 
shall  be  to  receive  reports  of  Joint  Committees,  to  discuss  freely  matters  of 
mutual  interest  and  concern  to  the  Company  and  its  employees,  embracing  a 
consideration  of  suggestions  to  promote  increased  efficiency  and  production, 
to  improve  working  and  living  conditions,  to  enforce  discipline,  avoid  friction, 
and  to  further  friendly  and  cordial  relations  between  the  Company's  officers 
and  employees. 

2.  Representation  at  Joint  Conferences. 

At  the  joint  conferences  the  Company  shall  be  represented  by  its  President 
or  his  representative  and  such  other  officials  as  the  President  may  designate. 
The  employees  shall  be  represented  by  their  elected  representatives.  The  Com- 
pany's representatives  shall  not  exceed  in  number  the  representatives  of  the 
employees.  The  Company  shall  provide  at  its  own  expense  appropriate  places 
of  meeting  for  the  conferences. 

3.  Proceedings   of  Joint  Conferences. 

The  joint  conferences  shall  be  presided  over  by  the  President  of  the 
Company,  or  such  executive  officer  as  he  may  designate.  Each  conference 
shall  select  a  Secretary  who  shall  record  its  proceedings.  The  record  of 
proceedings  shall  be  certified  to  by  the  presiding  officer. 

4.  Joint  Committees  on  Industrial  Relations. 

The  first  joint  conference  held  in  each  year  shall  select  the  following 
joint  committees  on  industrial  relations,  which  joint  committees  shall  be  regarded 
as  permanent  committees  to  be  entrusted  with  such  duties  as  are  herein  set 
forth,  or  as  may  be  assigned  by  the  conferences.  These  joint  committees  shall 
be  available  for  consultation  at  any  time  throughout  the  year  with  the  Advisory 
Board  on  Social  and  Industrial  Betterment,  the  President,  the  President's 
Executive  Assistant,  or  any  officer  of  the  Operating  Department  of  the  Company. 

(a)  Joint  Committee  on  Industrial  Co-operation  and  Conciliation,  to  be 
composed  of  twelve  members; 

(b)  Joint  Committee  on  Safety  and  Accidents,  to  be  composed  of  twelve 
members ; 

(c)  Joint  Committee  on  Sanitation,  Health  and  Housing,  to  be  composed 
of  twelve  members ; 

(d)  Joint  Committee  on  Recreation  and  Education,  to  be  composed  of  twelve 
members. 

^. — Selection  and  Composition  of  Joint  Committees. 

In  selecting  the  members  of  the  several  joint  committees  on  industrial 
relations,  the  employees'  representatives  shall,  as  respects  each  committee, 
designate  one-half  the  number  of  members,  and  the  President  of  the  Company 
or  his  representative  the  other  half. 

6.     Duties  of  Joint  Committee  on  Industrial  Co-operation  and  Conciliation. 

The  Joint  Committee  on  Industrial  Co-operation  and  Conciliation  may,  of 
its  own  initiative,  bring  up   for  discussion  at  the  Joint  Conferences,  or  have 

174 


referred  to  it  for  consideration  and  report  to  the  President  or  other  proper 
officer  of  the  Company  at  any  time  throughout  the  year,  any  matter  pertaining 
to  the  prevention  and  settlement  of  industrial  disputes,  terms  and  conditions 
of  employment,  maintenance  oi  order  and  discipline.  Company  stores,  etc.,  etc. 

7.  Duties  of  Joint  Committee  on  Safety  and  Accidents. 

The  Joint  Committee  on  Safety  and  Accidents  may,  of  its  own  initiative, 
bring  up  for  discussion  at  the  Joint  Conferences,  or  have  referred  to  it  for 
consideration  and  report  to  the  President  or  other  proper  officer  of  the  Company 
at  any  time  throughout  the  year,  any  matter  pertaining  to  inspection,  the  pre- 
vention of  accidents,  the  safeguarding  of  machinery  and  dangerous  working 
places,  the  use  of  explosives,  fire  protection,  first  aid,  etc.,  etc. 

8.  Duties  of  Joint  Committee  on  Sanitation,  Health  and  Housing. 

The  Joint  Committee  on  Sanitation,  Health  and  Housing  may,  of  its  own 
initiative,  bring  up  for  discussion  at  the  Joint  Conferences,  or  have  referred 
to  it  for  consideration  and  report  to  the  President  or  other  proper  officer  of 
the  Company  at  any  time  throughout  the  year,  any  matter  pertaining  to  health, 
hospitals,  physicians,  nurses,  occupational  diseases,  tuberculosis,  sanitation,  water 
supply,  sewage  system,  garbage  disposal,  street  cleaning,  wash  and  locker  rooms, 
housing,  homes,  rents,  gardens,  fencing,  etc.,  etc. 

9.  Duties  of  Joint  Committee  on  Recreation  and  Education. 

The  Joint  Committee  on  Recreation  and  Education  may,  of  its  own  initiative, 
bring  up  for  discussion  at  the  Joint  Conferences,  or  have  referred  to  it  for 
consideration  and  report  to  the  President  or  other  proper  officer  of  the  Com- 
pany, at  any  time  throughout  the  year,  any  matter  pertaining  to  social  centers, 
halls,  playgrounds,  entertainments,  moving  pictures,  athletics,  competitions,  field 
days,  holidays,  schools,  libraries,  classes  for  those  who  speak  only  foreign 
languages,  technical  education,  manual  training,  health  lectures,  classes  in  first 
aid,  religious  exercises,  churches  and  Sunday  schools,  club  houses,  Y.  M.  C.  A. 
organizations,  etc.,  etc. 


Part  III. — The  Prevention  and  Adjustment  of  Industrial  Disputes 

/.     Observance  of  Laws,  Rules  cmd  Regulations. 

There  shall  be  on  the  part  of  the  Company  and  its  employees,  a  strict 
observance  of  the  federal  and  state  labor  laws  and  of  the  Company's  rules  and 
regulations  supplementing  the  same. 

2.  Wages  and  rules  open  to  inspection. 

The  wage  rates  shall  be  kept  on  file  by  the  superintendents  of  the  several 
departments  and  shall  be' open  to  inspection  by  any  representative  or  other 
employee  upon  request.  The  rules  in  regard  to  working  conditions  shall  be 
posted  in  a  conspicuous  place  in  each  subdivision. 

3.  No  discrimination  on  account  of  membership  or  non-membership   in  labor 

or  other  organizations. 
There  shall  be  no  discrimination  by  the  Company  or  by  any  of  its  employees 
on  account  of  membership  or  non-membership  in  any  society,  fraternity  or  union. 

4.  The  right  to  hire  and  discharge,  and  the  management  of  the  Works. 

The  right  to  hire  and  discharge,  the  management  of  the  Works,  and  the 
direction  of  the  working  forces,  shall  be  vested  exclusively  in  the  Company, 
and  except  as  expressly  restricted,  this  right  shall  not  be  abridged  by  anything 
contained  herein. 

175 


5-     Employees'  right  to  caution  or  suspension  before  discharge. 

There  shall  be  posted  in  each  subdivision  a  list  of  offences  for  commission 
of  which  by  an  employee  dismissal  may  result  without  notice.  For  other 
offences,  employees  shall  not  be  discharged  without  first  having  been  notified 
that  a  repetition  of  the  offence  will  be  cause  for  dismissal.  A  copy  of  this 
notification  shall,  at  the  time  of  its  being  given  to  an  employee,  be  sent  also 
to  the  President's  Industrial  Representative  and  retained  by  him  for  purposes 
of  future  reference.  Nothing  herein  shall  abridge  the  right  of  the  Company 
to  relieve  employees  from  duty  because  of  lack  of  work.  Where  relief  from 
duty  through  lack  of  work  becomes  necessary,  men  with  families  shall,  all 
things  being  equal,  be  given  preference. 

6.  Employees'  right  to  hold  meetings. 

Employees  shall  have  the  right  to  hold  meetings  at  appropriate  places  on 
Company  property  or  elsewhere  as  they  may  desire  outside  of  working  hours 
or  on  idle  days. 

7.  Employees'  right  to  purchase  where  they  please. 

Employees  shall  not  be  obliged  to  trade  at  the  Company  stores,  but  shall 
be  at  perfect  liberty  to  purchase  goods  wherever  they  may  choose  to  do  so. 

8.  Employees'  right  of  appeal  to  President  of  Company  against  unfair  conditions 

or  treatment. 

Subject  to  the  provisions  hereinafter  mentioned,  every  employee  shall  have 
the  right  of  ultimate  appeal  to  the  President  of  the  Company  concerning  any 
condition  or  treatment  to  which  he  may  be  subjected  and  which  he  may  deem 
unfair. 

9.  Duty  of  President's  Industrial  Representative. 

It  shall  be  the  duty  of  the  President's  Industrial  Representative  to  respond 
promptly  to  any  request  from  employees'  representatives  for  his  presence  in 
any  subdivision,  and  to  visit  all  of  them  frequently  to  confer  with  the  employees 
or  their  representatives  and  the  superintendents  respecting  working  and  living 
conditions,  the  observance  of  federal  and  state  laws,  the  carrying  out  of  Com- 
pany regulations,  and  to  report  the  result  of  such  conferences  to  the  President. 

10.  Complaints  and  grievances  to  be  taken  up  first  with  foremen  and  super- 

intendents. 

Before  presenting  any  grievance  to  the  President,  the  President's  Industrial 
Representative,  or  other  of  the  higher  officers  of  the  Company,  employees  shall 
first  seek  to  have  differences  or  the  conditions  complained  about  adjusted  by 
conference,  in  person  or  through  their  representatives,  with  the  foreman  or 
superintendent. 

//.     Investigation   of  grievances  by  President's  Industrial  Representative. 

Employees  believing  themselves  to  be  subjected  to  unfair  conditions  or 
treatment  and  having  failed  to  secure  satisfactory  adjustment  of  the  same 
through  the  superintendent,  may  present  their  grievances  to  the  President's 
Industrial  Representative,  either  in  person  or  through  their  regularly  elected 
representatives,  and  it  shall  be  the  duty  of  the  President's  Industrial  Repre- 
sentative to  look  into  the  same  immediately  and  seek  to  adjust  the  grievance. 

176 


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12.  The  right  of  appeal  to  the  superior  officers  of  the  Company  against  unfair 
treatment,  conditions^  suspensions  or  dismissals. 
Should  the  President's  Industrial  Representative  fail  to  satisfactorily  con- 
ciliate any  difference,  with  respect  to  any  grievance,  suspension  or  dismissal, 
the  aggrieved  employee,  either  himself  or  through  his  representative — and  in 
either  case  in  person  or  by  letter — may  appeal  for  the  consideration  and  adjust- 
ment of  his  grievance  to  the  Manager,  General  Manager,  or  the  President  of 
the  Company,  in  consecutive  order.  To  entitle  an  employee  to  the  consideration 
of  his  appeal  by  any  of  the  higher  officers  herein  mentioned,  the  right  to  appeal 
must  be  exercised  within  a  period  of  two  weeks  after  the  same  has  been  referred 
to   the   President's   Industrial   Representative   without   satisfactory   redress. 

I  J.     Reference  of  differences  m  certain  cases  to  Joint  Committee  on  Industrial 
Co-operation  and  Conciliation. 

Where  the  President's  Industrial  Representative  or  one  of  the  higher  officials 
of  the  Company  fails  to  adjust  a  difference  satisfactorily,  upon  request  to  the 
President  by  the  employees'  representatives  of  the  division  concerned,  or  upon 
the  initiative  of  the  President  himself,  the  difference  shall  be  referred  to  the 
Joint  Committee  on  Industrial  Co-operation  and  Conciliation,  and  the  decision 
of  the  majority  of  such  Joint  Committee  shall  be  binding  upon  all  parties. 

14.  Representation  on  Joint  Committee  to  be  equal  when  considering  adjustment 

of  differences. 

Whenever  the  Joint  Committee  on  Industrial  Co-operation  and  Conciliation 
is  called  upon  to  act  with  reference  to  any  difference,  except  by  the  consent  of 
all  present  the  Joint  Committee  shall  not  proceed  with  any  important  part  of 
its  duties  unless  both  sides  are  equally  represented.  Where  agreeable,  equal 
representation  may  be  effected  by  the  withdrawal  of  one  or  more  members 
from  the  side  of  the  Joint  Committee  having  the  majority. 

15.  Uv'pire  to  act  with  Joint  Committee  in  certain   cases. 

Should  the  Joint  Committee  on  Industrial  Co-operation  and  Conciliation 
to  which  a  difference  may  have  been  referred,  fail  to  reach  a  majority  decision 
in  respect  thereto,  if  a  majority  of  its  members  so  agree,  the  Joint  Committee 
may  select  as  umpire  a  third  person  who  shall  sit  in  conference  with  the  Com- 
mittee and  whose  decision  shall  be  binding  upon  all  parties. 

16.  Arbitration  or  Investigation  in  certain  cases. 

In  the  event  of  the  Joint  Committee  on  Industrial  Co-operation  aid  Con- 
ciliation failing  satisfactorily  to  adjust  a  difference  by  a  majority  decision  or 
by  agreement  on  the  selection  of  an  umpire,  as  aforementioned,  within  ten 
days  of  a  report  to  the  President  of  the  failure  of  the  Joint  Committee  to 
adjust  the  difference,  if  the  parties  so  agree,  the  matter  shall  be  referred  to 
arbitration,  otherwise  it  shall  be  made  the  subject  of  investigation  by  the  State 
of  Colorado  Industrial  Commission,  in  accordance  with  the  provisions  of  the 
statute  regulating  the  powers  of  the  Commission  in  this  particular.  Where  a 
difference  is  referred  to  arbitration,  one  person  shall  be  selected  as  arbitrator 
if  the  parties  can  agree  upon  his  selection.  Otherwise  there  shall  be  a  board  of 
three  arbitrators,  one  to  be  selected  by  the  employees'  representatives  on  the 
Joint  Committee  of  Industrial  Co-operation  and  Conciliation,  one  by  the  Com- 
pany's representatives  on  this  Committee,  and  a  third  by  the  two  arbitrators 
thus  selected. 

177 


'I 


By  consent  of  the  members  of  the  Joint  Committee  on  Industrial  Co-opera- 
t.on  and  Concihation  to  which  a  difference  has  been  referred,  the  Industrial 
Commission  of  the  State  of  Colorado  may  be  asked  to  appoint  all  of  the 
arbitrators  or  itself  arbitrate  the  difference.  The  decision  of  the  sole  arbitrator 
or  ot  the  majority  of  the  Board  of  Arbitration  or  of  the  members  of  the  State 
Colorado  Industrial  Commission  when  acting  as  arbitrators,  as  the  case  may 
be,  shall  he  final  and  shall  be  binding  upon  the  parties. 

//.     Protection  of  employees'  representatives  against  discrimination. 

To  protect  against  the  possibility  of  unjust  treatment  because  of  any  action 
taken  or  to  be  taken  by  them  on  behalf  of  one  or  more  of  the  Company's 
employees,  any  employees'  representative  believing  himself  to  be  discriminated 
against  for  such  a  cause  shall  have  the  same  right  of  appeal  to  the  officers  of 
the  Company  or  to  the  Joint  Committee  on  Industrial  Co-operation  and  Con- 
cihation  as  is  accorded  every  other  employee  of  the  Company.  Having  exercised 
this  right  m  the  consecutive  order  indicated  without  obtaining  satisfaction  for 
thirty  days  thereafter  he  shall  have  the  further  right  of  appeal  to  the  Industrial 
Commission  of  the  State  of  Colorado,  which  body  shall  determine  whether  or 
not  discnmination  has  been  shown,  and  as  respects  any  representative  deemed 
by  the  Commission  to  have  been  unfairly  dealt  with,  the  Company  shall  make 
such  reparation  as  the  State  of  Colorado  Industrial  Commission  may  deem  just. 

COLUMBIA  GRAPHOPHONE  CO..  Bridgeport,  Conn. 

Experience.— H^s  always  met  representatives  committees  by  departments 
Where  organized,  such  as  machinists,  toolmakers,  polishers,  and  buffers  the 
men  have  had  their  own  union  shop  committees  who  deal  with  foremen  and  on 
request  see  the  management  when  adjustments  cannot  be  secured  through  the 
loremen.  * 

Personal  Opinion  (Mr.  Edward  Brundage,  employment  agent)  •_"!  per- 
sonally beheve  department  shop  committees  should  be  recognized.  I  do  not 
believe,  however,  that  a  shop  committee  covering  the  whole  plant,  if  of  a  large 
size,  is  necessary,  or  a  wise  move  if  the  management  has  proper  ideals  toward 
Its   employees. 

CORNELL  WOOD  PRODUCTS  COMPANY,  Cornell,  Wisconsin. 

"It  has  been  our  policy  for  several  years  to  seek  the  co-operation  of  our 
employees  and  their  recommendations  on  a  good  many  questions.  We  have 
SIX  committees,  the  personnel  of  which  changes  every  three  months,  who  are 
authorized  to  inspect  and  make  recommendations  along  the  lines  of  safety  first 
mill  housekeeping  and  general  welfare  of  employees.  Our  foremen  meet 
monthly  with  the  executives  of  the  property  who  are  located  at  the  plant  and 
discuss  the  various  problems  which  come  up  during  the  previous  month  The 
questions  which  come  up  are  discussed  impartially,  and.  whenever  possible 
recommendations  made  are  usually  accepted  by  the  management. 

"As  a  result  of  the  above,  close  contact  has  been  obtained  with  our  employees 
hereby  producing  a  very   friendly   feeling  and  eliminating   friction,   which   we 
lormerly  had. 

"In  view  of  the  success  of  the  plan  outlined  above,  we  have  found  it 
necessary  to  develop  the  'Shop  Committee'  (Works  Committee)  idea  This 
has  been  given  a  great  deal  of  thought,  however,  but  our  opinion  is  that  the 

at     re'^em  ' ''   ^'""'^^^  '''''   ''   '"^'''"'   ^'''  °"'  "'''^'  """^^^  conditions   ruling 

178 


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DENNISON  MANUFACTURING  COMPANY,  Framingham,  Mass. 

"For  nearly  twenty-five  years  we  have  had  in  the  shop  an  association  for 
accident  and  sick  benefit  insurance  known  as  the  Men's  Mutual  Relief  Associa- 
tion and  for  a  good  many  years  this  association,  through  its  members  and 
officers,  has  taken  an  active  interest  in  the  shop  conditions,  and  this  interest 
has  been  encouraged  by  the  management.  Within  the  last  few  years  the  Relief 
Association  has  elected  one  of  their  members  each  month  for  three  months' 
service  to  a  board  called  the  Safety  Committee,  and  the  management  has 
appointed  a  workman  each  month  for  the  same  period.  This  committee, 
therefore,  consists  of  six  men  from  the  shop  and  a  chairman  who  is  the  safety 
engineer  of  the  company  and  is  responsible  for  the  accident  prevention  work  in 
this  factory. 

"The  employees  have  also  organized  a  Credit  Union  which  has  had  the 
firm  support  and  co-operation  of  the  management,  and  to  a  certain  extent,  the 
Credit  Union  has  represented  employees'  views  along  certain  lines. 

"Very  recently,  at  the  instance  of  the  Department  of  Labor,  the  employees 
of  this  company  held  an  election  and  elected  sixty  odd  representatives  from 
various  rooms  and  departments  in  the  shop  who,  in  turn,  appointed  from  their 
own  number  five  representatives  to  sit  with  one  appointed  by  the  management 
as  the  War  Industries  Committee.  This  committee  will  consider  many  matters 
suggested  by  the  Department  of  Labor,  but  the  management  hope  its  activities 
will  not  end  with  the  war  and  that  it  may  continue  to  serve  so  far  as  its  services 
are  needed  in  the  consideration  of  such  questions  as  you  mention  in  your 
letter."— (Letter  from  Mr.  A.  B.  Rich.) 

The  President  of  the  Company.  Mr.  H.  S.  Dennison.  under  date  of  October 
10,  writes : 

"I  want  to  express  my  very  strong  hope  that  the  shop  committee  idea  is 
to  form  the  basis  of  a  very  considerable  improvement  in  industrial  relations 
in  the  future.  From  our  own  analysis  of  the  problem  of  industrial  relations, 
we  are  again  and  again  driven  to  the  shop  committee  policy  as  an  essential 
element.  We  had.  before  the  war,  about  prepared  plans  for  a  gradual  and 
experimental  adoption  of  the  plan  and  will  certainly  work  to  carry  it  out  as 
soon  as  we  are  in  a  position  to  give  to  it  the  thought  and  care  it  deserves. 
Meanwhile,  my  own  belief  is  that  every  bit  of  encouragement  the  Government 
agencies  can  afford,  so  that  the  shop  committee  plan  will  be  somewhat  rooted  in 
our  system  by  the  end  of  the  war,  will  be  a  great  service." 

DUTCHESS  MANUFACTURING  CO.,  Poughkeepsie,  N.  Y. 

"On  January  1st,  191^,  we  started  our  first  department  under  the  new 
plan.  We  soon  found  that  we  had  not  taken  sufficiently  into  account  the 
necessity  for  co-operation.  Since  that  time,  we  have  secured  the  services  of 
an  employment  manager,  who  took  one  of  the  Government  courses,  and  we 
have  organized  shop  committees  in  nearly  all  of  our  factory  departments.  We 
expect  to  complete  this  shop  committee  organization  so  that  it  will  embrace 
every  activity.     So  far,  the  results  have  been  most  satisfactory. 

"We  always  have  and  expect  to  continue  to  operate  an  open  shop,  although 
there  has  been  some  activity  among  our  employees  during  the  summer  along 
trade  union  lines. 

"Our  committee  plan  briefly  is  as  follows:  We  require  the  employees 
of  any  department  to  have  a  meeting,  making  nominations  and  balloting  for 

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the  election  of  a  committee,  usually  of  three  from  their  number.  To  this  com- 
mittee is  added  suitable  representatives  of  the  firm  and  the  committee  as  a 
whole  decide  on  all  questions,  such  as  those  outlined  in  your  letter." 

Personal  Opinion: — "Personally,  I  regard  the  shop  committee  idea  as  the 
very  best  means  of  promoting  co-operation.  It  breaks  down  the  barrier  of 
suspicion  and  distrust  and  paves  the  way  to  the  'willing  mind,'  which  we  believe 
is  absolutely  essential  to  satisfactory  progress." — F.  L.  Sweetser,  General 
Manager. 

EVERLASTIK,  Incgrpgilated,  Bridgeport,  Conn. 

"We  have  seven  plants.  In  all  of  these  plants  we  have  meetings  of  the 
foremen  and  heads  of  departments  to  consider  all  practical  questions  in  con- 
nection with  the  operation  of  the  mill  and  working  conditions.  The  question 
of  wages  is  not  a  matter  for  discussion  at  these  meetings.  Any  other  matters, 
however,  are  proper  for  discussion  at  these  foremen's  meetings.  In  three  of 
our  plants  committees  from  the  employees  are  invited  to  meet  with  the  mill 
management  and  take  up  such  matters  as  are  of  common  interest,  but  never 
discuss  the  question  of  wages.  We  consider  these  meetings  very  satisfactory 
and  are  very  confident  that  many  times  they  have  avoided  friction  between  the 
employees  and  the  management  of  the  mill 

"In  only  one  of  our  mills  are  the  employees  union-organized. 

"We  have  had  practically  no  labor  difficulties  in  any  of  our  mills,  and 
attribute  some  of  this  result  to  our  efforts  to  keep  as  closely  as  possible  to  the 
general  mind  of  the  employees  as  reflected  in  these- committees  in  the  larger 
mills  and  by  personal  contact  with  the  smaller  mills." 

WILLIAM  FILENE'S  SONS  CO.,  Boston,  Mass. 

THE   FILENE   CO-OPERATIVE  ASSOCIATION 

From  "A   Thuribnail  Sketch   of  the  Filene   Co-operative   Association" 

The  Filene  store  is  operated  on  a  minimum  wage  scale,  i.  e.,  no  woman  or 
girl  employee  is  paid  less  than  $8.00  a  week. 

Long  ago.  in  the  transition  from  the  other  little  store  to  the  present 
business,  the  friendly  personal  relations  between  the  owners  and  the  employees 
of  the  little  store  became  difficult  to  maintain  because  of  the  fast  increasing 
numbers.  But  the  firm  and  the  employees  had  found  these  relations  so  valuable 
that  they  still  wished  them  maintained.  The  story  of  their  search  for  the 
way  of  doing  that  is  the  story  of  the  F.  C.  A.  (i.  e.,  the  Filence  Co-operative 
Association). 

That  search  was  entered  upon  and  carried  through  in  a  spirit  of  fullest 
sympathy  with  the  ideals  of  human  justice  and  brotherhood,  but  there  was  also 
the  fullest  realization  that  nothing  permanently  good  would  be  accomplished 
which  was  not  also  based  upon  and  justified  by  the  principles  of  successful 
business. 

Both  ends  have  been  obtained.  The  employees  have  been  given  ample  power 
to  correct  on  their  own  initiative  and  without  the  assistance  of  the  firm  any 
bad  or  unjust  conditions  or  rules  affecting  their  discipline  or  work.  The  firm 
in  turn  has  secured  the  hearty  co-operation  of  its  people,  and  its  management 
has  been  able  to  give  to  work  for  the  growth  and  success  of  the  business  many 
hours  which  might  otherwise  have  had  to  be  given  to  the  discipline  and 
handling  of  employees. 

The  work  has  shown  that  the  employees,  in  exercising  the  very  considerable 
power  given  to  them  as  the  result  of  this   work,  inevitably  come  also   to   see 

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z'' 


*     '  % 


^     _ 


much  more  clearly  and  to  sympathize  with  the  problems  and  difficulties  of  the 
management.  Having  seen  them,  they  do  not  abuse  their  power,  but  on  the 
contrary,  they  take  up  heartily  their  share  of  the  burden  of  the  business  and 
become  real  co-operators  in  it.  It  is  the  clear  demonstration  of  this  fact  repeat- 
edly proven  which  has  made  possible  what  has  already  been  accomplished.  Tt  is 
that,  also,  which  in  the  future  will  lead,  not  only  to  the  maintenance,  but  also 
to  the  enlargement  of  the  scope  of  the  Filene  Co-operative  Association.     .     .     . 

The  Filene  Co-operative  Association  is  an  organization  to  which  every 
regular  employee  of  Wm.  Filene's  Sons  Company  belongs  by  virtue  of  employ- 
ment. There  are  no  dues  imposed  upon  membership,  but  each  feature  of  the 
work  of  the  Association  is  planned  to  be  self-supporting.  Participation  in  the 
various   features  is  optional  with  the  members. 

Its  progress  has  more  firmly  established  a  true  spirit  of  willing  co-operation 
among  all  employees  and  the  corporation  to  the  end  that  their  general  welfare 
might  be  conserved  and  their  efficiency  increased. 

The  purpose  of  the  association  is  to  prevent  the  enforcement  by  the  manage- 
ment of  unjust  rules  affecting  the  discipline  and  working  conditions  of  em- 
ployees; to  prevent  unjust  discharges  or  removals  of  employees;  to  inaugurate 
when  needed  new  rules  affecting  the  discipline,  work  or  conditions  of  work  of 
employees;  to  conduct  the  social  and  so-called  welfare  activities  of  the  store 
without  the  dictation,  but  with  the  co-operation  of  the  management. 

In  general,  its  purpose  is  to  enable  all  of  the  employees  of  the  corporation 
to  have  a  sufficient  voice  in  the  store  government  and  administration  to  make 
it  just,  considerate  and  effective,  and  to  develop  a  healthy  atmosphere  of  real 
service  to  customers  and  to  each  other. 

Powers  of  the  F.  C.  A. — The  way  the  employees  may  make  their  voice  in 
the  management  heard  is  as  follows : 

If  two-thirds  of  the  members  of  the  F.  C.  A.  vote  in  mass  meeting  to 
change,  initiate  or  amend  any  rule  that  affects  the  discipline  or  working  condi- 
tions of  the  employees  of  the  store,  such  vote  becomes  at  once  operative. 

Still  further,  if  five  sixths  of  the  members  of  the  Council,  the  elected 
governing  body  of  the  F.  C.  A.,  vote  in  favor  of  such  a  rule  in  meeting,  it 
goes  into  effect  at  the  close  of  one  week,  unless  meanwhile  vetoed  by  the 
General  Manager,  President  or  Board  of  Managers  of  the  Corporation,  or  a 
majority  vote  of  the  F.  C.  A.  But  even  when  vetoed  by  the  management  a 
mass  meeting  may  be  held  by  the  members  of  the  F.  C.  A.  and  a  two-thirds 
vote  of  the  entire  F.  C.  A.  at  such  meeting  will  pass  the  rule  over  the  veto. 

Directors. — The  F.  C.  A.  became  a  still  more  important  factor  in  the  business 
in  1912,  for  at  that  time  it  was  for  the  first  time  represented  on  the  Board  of 
Directors  of  the  corporation.  In  this  way  the  F.  C.  A.  is  constantly  in  touch 
with  the  direction  of  the  business  and  has  a  voice  in  the  conduct  of  it.  The 
representation  on  the  board  of  directors  was  increased  from  two  members  in 
1912  to  three  members  in  1913  and  will  be  increased  in  1914  to  four  out  of  a 
total  of  eleven  directors.  In  few,  if  any,  businesses  in  the  world  do  the 
employees  hSive  a  stronger  voice. 

Use  of  Power. — How  have  the  employees  used  their  power?  Has  it  been 
used  by  the  employees  as  a  club  to  force  their  employers  into  unfair  con- 
cessions, as  they  might  well  have  done  under  the  organization?  Or  has  it  been 
used  in  a  judicial,  fair-minded  manner?  Let  us  take  an  incident  that  happened 
in  1911.     The  question  for  vote  was  as  to  whether  the  store  should  be  closed 

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all  day  Saturday,  June  18,  the  day  preceding  being  Bunker  Hill  Day,  a  State 
holiday.  If  this  were  done  it  would  give  the  employees  a  three-day  holiday. 
A  precedent  for  such  a  vote  had  been  established  some  years  before  when  they 
had  voted  to  close  the  store  on  July  5  (a  Saturday),  July  4.  the  hoHday,  coming 
on    Friday. 

Agitation  had  been  quite  intense  during  the  days  preceding  the  meeting, 
for  the  employees  naturally  were  interested  in  having  an  additional  day's  rest 
with  pay;  the  meeting  was  to  hear  both  sides  of  the  question  and  to  decide. 
After  those  in  favor  of  closing  had  made  their  plea,  those  opposed  brought 
out  an  argument  few  had  considered,  the  fact  that  conditions  were  not  analagous. 
It  was  pointed  out  that  a  Saturday  in  the  middle  of  June  was  much  more 
valuable  and  costly  to  lose  than  one  in  July,  that  it  was  the  last  Saturday  before 
the  bulk  of  the  school  graduations  and  that  much  more  business  would  in  all 
probability  be  lost.  When  the  vote  was  taken,  the  employees  voted  by  an 
overwhelming  majority  not  to  have  the  extra  holiday. 

Similar   fair-mindedness   has  at  all  times  characterized  the  actions   of  the 
Association.     The  important  votes  it  has  passed  have  included,  beside  the  one 
mentioned  above,  a  vote  giving  the  employees  an  additional  holiday  on  the  day 
following  the  4th  of  July;  a  vote  against  the  customary  keeping  open  evenings 
preceding  Christmas;   several  votes  as  to  when  the  working  day  should  end; 
a  vote  to  allow  employees  to  buy  advertised  goods  on  any  day,  including  Monday, 
during   their   regular   shopping   hours;    a   vote   to    raise   enough   money   to   aid 
F.  C  A.  members  suffering  loss  in  the  Chelsea  fire  in  1908;  a  vote  that  employees 
be  permitted  to  buy  black  goods  for  store  use  at  a   discount  of  20  per  cent., 
which  was   10  per  cent,  more  than  was  allowed  at  that  time  on  other  goods.' 
Such  power  puts  the  employees  into  a  closer  relation  to  the  firm  than  would 
seem  possible  under  any  other  plan.     But  the  employees  have  never  attempted 
to  use  this  power  in  a  way  that  would  be  disadvantageous  to  the  firm,  realizing 
that  what  is  best  for  the  firm  is  in  the  end  best  for  them.     This  conception  is 
one  of  the  greatest  benefits  resulting  from  the  Filene  Co-operative  Association. 
Organisation.— At  the  present  time  $100,000  or  more  flows  in  and  out  of 
the  treasury  of  the  F.  C.  A.  yearly  and  to  regulate  and  transact  the  business 
of    the   organization    requires    much    time    and    considerable    system.      A   great 
majority  of  this  time  is  given  by  the  employees,  outside  of  store  hours,  although 
some  exceptions  are  made,  notably  in  the  case  of  the  Arbitration  Board,  whose 
work  is  covered  below,  where  it  is  necessary  to  call  witnesses  from  many  parts 
of  the   store,   and   where   it   is   perhaps   not   known   definitely   ahead   who   such 
witnesses  might  be. 

The  organization  of  the  Filene  Co-operative  Association  is  as  follows : 
Directly  responsible  to  the  members  is  the  F.  C.  A.  Council,  the  governing 
board,   the   members  of   which   are  elected   by   sections   from   the   store.     Next 
in    responsibility    come    the    officers    of    the    association,    the    President,    Vice- 
President,  Secretary  and   Treasurer  all   being  elective  officers. 

Then  come  the  committees,  which  may  be  briefly  divided  into  two  groups 

those  elected  by  the  Association  and  those  appointed  by  the  President  with 
the  approval  of  the  council.  Among  the  elective  committees  are  the  Arbitration 
Board,  the  Insurance,  Club  House,  and  the  Deposit  and  Loan  Bureau;  the 
appointive  committees  include  the  Library,  Health,  Lecture,  Finance,  Enter- 
tainment, Athletic,  Music,  Suggestion,  Publication,  Constitution  and'  Special 
Committees. 

Directly   responsible   to   the   F.   C   A.   council   is   the   F.   C   A.   Executive 
Secretary  and  assistants  whose  work  is  covered  below  in  greater  detail. 

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Then  there  is  a  Medical  Department  reporting  to  the  council,  and  several 
clubs  organized  independently,  but  all  reporting  to  the  main  group  of  the 
F.  C.  A. 

A  complex  organization?  Perhaps  so,  on  paper,  yet  it  was  built  up  bit  by 
bit.  For  each  part  of  the  organization  a  need  was  shown  before  its  inception 
and  the  need  was  met  in  a  business-Hke  manner.  So  each  additional  cog  in 
the  wheel,  instead  of  making  the  machine  revolve  more  slowly,  has  rendered 
the  whole  more  manageable.  For  instance,  as  the  F.  C.  A.  grew,  it  was  found 
that  mass  meetings  of  the  entire  body  were  becoming  cumbersome,  and  that 
it  was  only  on  rare  occasions  and  under  great  stress  that  all  the  members  could 
be  brought  together.  Hence  the  occasion  arose  for  the  council,  to  transact 
the  business  of  and  act  for  the  main  body,  and  the  proviso  for  mass  meetings 
by  divisions. 

Naturally  the  Association  requires  business  quarters  in  which  to  transact 
its  business.  As  far  back  as  1901,  the  firm  set  aside  certain  space  for  the  em- 
ployees and  pledged  the  F.  C.  A.  that  the  business  would  never  encroach  upon 
it.  When  the  new  store  was  opened  in  1912  the  quarters  were,  of  course, 
enlarged  and  improved  upon.  The  Association  now  has  for  its  sole  use  nearly 
15,000  square  feet  on  the  eighth  floor  of  the  Filene  store. 

Let  us  for  a  moment  view  these  "club  rooms,"  as  they  are  called. 

At  the  right,  as  one  enters,  is  a  complete  Clinic,  where  medical  assistance 
is  given.  It  consists  of  the  nurses'  office,  waiting  rooms,  doctor's  office,  men's 
and  women's  wards  and  the  coryza  room,  where  colds  are  treated.  Next 
comes  the  assembly  room,  used  for  dancing  and  fitted  with  easy  chairs  and 
piano.  Then  the  dining  hall,  with  its  tables  and  cafeteria  and  grocery  store; 
and  behind  them  is  the  kitchen— all  to  provide  good  food  for  the  employees 
at  prices  lower  than  are  possible  outside.  Adjoining  the  dining  hall  is  the 
library,  with  couch  chairs,  books,  magazines  and  trade  papers.  Here  also  an 
F.  C.  A.  manicurist  has  a  little  office  for  employees  only,  her  charge  being  one- 
half  the  regular  rate. 

Next  in  order  comes  the  office  of  the  F.  C.  A.  Secretary,  then  the  Com- 
mittee Room  where  smaller  committee  meetings  are  held,  and  a  Class  Room. 
This  latter  is  ordinarily  used  for  classes  in  salesmanhip,  but  for  the  twelve 
months  beginning  September  1,  1913,  it  was  loaned  to  the  City  of  Boston,  for 
use  in  the  retail  salesmanship  courses  which  the  city  carries  on. 

All  of  this  space  is  supplied  to  the  co-operative  association  by  the  manage- 
ment free  from  rent,  and  is  managed  by  the  employees  themselves. 

Clubhouse  Schedule.— Since  the  new  store  opened  in  September,  1912,  it 
has  become  necessary  to  prevent  conflicts  of  dates  between  various  committee 
meetings  to  arrange  a  schedule  for  several  weeks  ahead  showing  what  clubs 
and  committees  are  to  utilize  its  facilities  on  given  evenings. 

Activities  Committee.— The  Activities  Committee  is  the  baby  of  the  F.  C.  A. 
family,  but  it  is  a  healthy  youngster  and  it  is  growing  fast. 

It  is  its  duty  to  arrange  for  all  educational  opportunities  and  amusements 
which  do  not  come  directly  under  the  charge  of  the  various  clubs,  and  to 
schedule  and  arrange  for  the  various  activities  of  the  F.  C.  A.  in  order  that 
there  may  be  no  conflicts  as  to  the  use  of  the  club  rooms,  and  that  no  two 
organizations  may  have  meetings  on  the  same  night,  where  it  will  be  to  the 
detriment  of  one  or  the  other. 

This  committee  first  took  the  field  in  the  fall  of  1913  and  much  credit 
belongs  to  it  for  the  business-hke  way  in  which  it  has  handled  its  educational 
lines.    These  educational  branches  include  classes,  in  German,  French,  Millinery, 

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Sewing,  Modern  Dancing  and  Public  Speaking.  All  of  these  activities  have 
been  self-supporting,  each  member  paying  a  proportionate  share  of  the  expense. 
They  have  made  it  possible  to  get  these  advantages  for  less  than  the  same 
course   would   have   cost   elsewhere. 

In  this  connection  it  may  be  noted  in  passing  that  beside  the  F.  C.  A. 
educational  classes  the  store  itself  conducts  regular  educational  work  through 
its  educational  department.  This  department  meets  the  salespeople,  stock  people 
and  markers  in  discussions  on  salesmanship  and  business  management,  and  in 
addition,  through  a  connection  with  the  public  Continuation  School,  conducts 
classes  in  retail  salesmanship,  textiles,  etc.  The  basis  of  that  work  is  a  clear 
statement  of  what  the  holder  of  each  position  requires  in  training  and  education 
to  fit  herself  more  fully  for  the  position  she  holds,  and  to  qualify  her  for 
promotion  into  the  higher  positions.  For  example,  if  it  is  believed  that  a 
person  is  fitted  for  a  buyership,  instead  of  allowing  her  to  gather  her  knowledge 
as  best  she  may,  she  will  follow  a  carefully  laid  out  course  of  training  for 
this  position.  Another  important  feature  of  the  new  educational  system  is  the 
attempt  to  train  those  higher  up,  the  executives,  that  they  in  turn  may  properly 
instruct  the  people  under  them.  This  gives  training  in  two  quarters,  from 
the  executive  down  and  from  the  beginners  up. 

The  amusements,  which  are  under  the  charge  of  this  group,  are:  the  Women's 
Bowling  League  (the  Men's  Bowling  League  being  a  part  of  the  Men's  Club), 
theatre  parties,  an  opportunity  to  see  the  best  operas,  and  the  campfire  group. 

Arbitration  Board  Founded  Jiine^  /90/.— August,  1912,  the  Arbitration 
Board's  purpose  and  powers  were  extended  and  freshly  defined.  The  following 
extracts  from  the  F.  C.  A.  Constitution  show  the  place  of  arbitration  in  the 
new  business: 

Purpose:  The  purpose  for  which  arbitration  is  established  in  the  busi- 
ness is  to  insure  justice  in  the  administration  of  the  work  of  the  store. 

Scope:— Tht  scope  of  its  activity  shall  include  all  cases  in  which  any 
member  of  the  F.  C.  A.  has  reason  to  question  the  justice  of  a  decision 
by  a  superior  or  the  action  of  an  F.  C.  A.  Committee  or  member. 

Duty:  The  duty  of  the  Board  shall  be  to  see  that  justice  prevails  either 
by  initiating  an  inquiry  or  by  granting  a  hearing  to  any  member  of  the 
F.  C.  A.  It  shall  conduct  an  exhaustive  examination  of  each  case  coming 
before  it. 

Powers:  The  powers  of  the  Arbitration  Board  are  intended  to  extend 
to  all  cases  of  difference  relating  to 

(1)  An  employee  and  the  management. 

(2)  Two  or  more  employees  in  matter  of  store  interest. 

(3)  The  justice  of  a  rule  in  question  affecting  an  employee. 

The  questions  most  frequently  brought  before  the  Board  are  of  dismissals, 
changes  in  position  or  wage,  transfers,  location  in  the  store,  missing  sales,  short- 
ages, lost  packages,  breakages,  torn  or  lost  garments,  differences  between  em- 
ployees, payment   for  suggestions. 

The  decision  of  the  Board  is  final  for  all  cases  arising  within  its  juris- 
diction ;  it  may,  however,  reconsider  a  case  upon  request,  if  it  so  chooses. 

In  cases  of  dismissal  or  increase  of  pay  a  two-thirds  vote  of  the  entire 
Board  is  needed  but  in  all  other  cases  a  majority  vote  of  the  entire  Board 
decides  the  case,  and  in  cases  of  salary  deductions  shall  be  an  order  for  refund. 

In  minor  cases,  by  majority  vote  of  the  whole  Arbitration  Board,  the  Chair- 
man may  appoint  a  sub-committee  of  three  members  to  act  as  an  Arbitration 

184 


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•!• 


Committee.  Its  action  may  be  appealed  from  by  either  party  to  the  Board  for 
confirmation  or  further  action  by  the  Board. 

Any  executive  may  have  any  controversy  between  him  and  the  executive 
authority  of  the  corporation  in  respect  to  his  employment,  arbitrated  by  a  special 
arbitration  committee — one  member  to  be  chosen  by  the  executive,  one  by  .the 
corporation  and  the  third  by  these  two.  Decisions  given  by  a  majority  of  these 
arbitrators  is   final. 

The  Arbitration  Board  consists  of  twelve  members,  elected  one  from  each 
section  of  the  store,  and  a  Chairman  appointed  from  the  Council  by  the  Presi- 
dent. The  member  of  the  Board  elected  from  each  section  of  the  store  shall 
be  the  counselor  or  advisor  of  that  section.    Duties  of  the  Section  Counselor  are : 

(a)  To  advise  the  employees  of  his  section  on  questions  arising  in  the 
conduct  of  their  work. 

{b)  To  distribute  information  as  to  the  Arbitration  Board  among  the 
the  people  of  his  section. 

{c)  To  instruct  an  appellant  in  the  detail  of  presenting  his  case  before 
the  Board. 

The  findings  of  this  Board  are  confidential.  It  is  of  interest,  however, 
in  viewing  its  work  to  note  that  through  the  years,  the  cases  seem  to  average 
about  half  in  favor  of  the  firm,  and  half  in  favor  of  the  appellant. 

Insurance  Committee. — Let  us  now  look  briefly  at  the  purpose  of  the  other 
committees  in  this  organization  and  the  work  they  have  accomplished. 

To  the  Insurance  Committee  belongs  the  honor  of  being  the  beginning  of 
the  F.  C.  A.  At  the  time  it  started  (1898)  there  were  about  one  hundred  em- 
ployees. The  Messrs.  Filene,  having  in  mind  the  losses  to  employees  in  both 
time  and  money  through  illness,  at  that  time  suggested  a  Mutual  Insurance 
Association.  The  suggestion  was  accepted  by  the  employees  and  nearly  all 
became  members.  The  original  plan  called  for  an  initiation  fee  of  25c  and 
dues  of  5c  weekly;  the  sick  benefits  were  five  dollars  a  week  for  not  over 
four  weeks  in  any  year,  and  there  was  a  death  benefit  of  fifty  dollars. 

The  insurance  organization  was  not  self-supporting  on  this  basis,  and  con- 
sequently, in  the  fall  of  1906,  the  question  was  taken  up  by  the  Council  anc^  a 
sliding  scale  adopted.  This  scale  was  again  readjusted  in  the  fall  of  1911  and 
now  reads  as  follows : 

Scale  Benefit  in  case  of  illness 

Death  Benefit   50  per  week 

30c  per  month    • 5  per  week 

35c  per  month 6  per  week 

50c  per  month   8  per  week 

60c  per  month    10  per  week 

Death  Benefit   50  perweek 

Medical  Department  Founded  in  1898. — Its  work  is  building  better  men  and 
women.  Simultaneously  with  the  birth  of  the  Insurance  Committee  came  the 
desire  to  prevent  illness  as  far  as  possible.  Ways  and  means  were  considered 
and  arrangements  made  to  have  come  to  the  store  one  hour  a  week  a  medical 
advisor  with  whom  members  could  consult  and  thereby  know  in  time  what 
steps  to  take  to  prevent  disease  and  breakdown. 

The  important  point  for  consideration  in  connection  with  this  medical 
department  was  that  employees  might  hesitate  to  go  to  a  physician  appointed 
and  paid  by  the  management  for  fear  that  illness  or  poor  health  might  be 
reported  to  the  firm  and  affect  their  employment.     It  was  arranged  that  the 

185 


medical  staff  should  be  hired  and  controlled  entirely  by  the  employees  them- 
selves. The  employees  have,  therefore,  had  entire  confidence  in  the  work  of 
the  clmic  and  have  made  use  of  it  freely.  The  result  has  been  of  great  benefit 
to  the  employees  and  to  the  firm  as  well. 

Our  Medical  Director  has  been  at  the  head  of  the  Medical  Department  for 
the  past  sixteen  years.  He  has  done  and  is  doing  an  immense  amount  of  good 
m  preventing  illness.  He  has  stimulated  Health  Talks  through  the  Lecture  Com- 
mittee, encouraged  the  use  of  proper  foods  through  the  Club  House  Committee, 
and  advised  F.  C.  A.  members  through  the  Echo,  the  Store  Paper,  how  to  dress 
and  care  for  the  body  in  all  kinds  of  weather.  He  has  obtained  special  rates 
for  our  Store  people  with  other  physicians,  dentists,  and  eye,  ear  and  throat 
specialists. 

In  the  fall  of  1905  a  registered  nurse  was  added,  a  fully  equipped  medicine 
cabinet  and  couches  installed  and  a  separate  doctor's  oflice  provided.  The  Store 
Management  from  the  beginning  has  paid  the  salary  of  the  registered  nurse  and 
all  medical  expenses.  The  present  clinic  is  a  model  of  its  kind  and  meets  every 
emergency  need  for  medical  help.     It  treats  or  advises  from  100  to  125  daily. 

Lecture  Cojvmittce  1898-1899.— Through  the  activities  of  the  Lecture  Com- 
mittee arrangements  have  been  made  not  only  for  Health  talks  but  also  for 
lectures  on  subjects  of  general  interest  by  many  well-known  and  interesting 
speakers. 

Library  Committee  1899.— As  the  interests  gradually  broadened,  in  1899  the 
Library  was  started,  using  as  a  nucleus  books  contributed  by  a  few  employees 
and  others.  The  dues  were  two  cents  a  week.  By  April,  1901,  the  library  had 
about  two  hundred  volumes.  There  are  now  eight  hundred  volumes  on  our 
shelves. 

Su^^irestion  Committee  1899.— To  encourage  thought  and  to  interest  em- 
ployees in  the  policies  and  activities  of  the  store  and  of  the  F.  C.  A.,  prizes  for 
accepted  suggestions  for  improvements  in  the  business  are  paid  according  to  a 
schedule  arranged  by  the  Store  Management.  These  prizes  are  awarded  by  a 
Suggestion  Committee  appointed  by  the  President  of  the  F.  C.  A.  They  may 
make  their  awards  on  the  recommendation  of  the  executive  whose  work  the 
suggestion  affects,  but  they  have  the  power  of  awarding  prizes  without  the 
approval  of  the  person  aflFected  by  the  suggestion. 

F.  C.  A.  Council  Founded  in  1905.— In  1905  it  was  found  impractical,  because 
of  the  greatly  increased  number  of  employees,  to  transact  business  by  mass  meet- 
ings of  employees  as  a  whole.  Consequently  in  this  year  the  F.  C.  A.  Council— 
the  legislative  body  of  the  Association— was  formed,  the  members  being  the 
elected  officers  of  the  Association  and  elected  representatives.  Originally  there 
was  one  representative  for  every  fifty  employees.  At  present  the  Council  con- 
sists of  one  member  from  each  of  twelve  sections  of  the  store,  nine  members 
elected  at  large,  and  the  officers. 

All  of  the  business  of  the  Association  is  transacted  at  the  bi-weekly  meet- 
ings of  the  Council  and  then  reported  back  to  the  employees  through  the  Echo, 
(the  F.  C.  A.  organ)  or  by  written  notice.  Only  rarely  is  it  necessary  or 
desirable  to  use  the  referendum.  It  was  made  use  of  in  1913,  for  instance,  when 
the  question  as  to  how  the  funds  of  subsidiary  organizations  should  be  handled 
was  up  for  discussion. 

The  mooted  point  was  a  proposed  amendment  to  the  constitution  providing 
that  all  funds  must  be  turned  over  to  the  treasurer  of  the  Association  and 
could   not  be  carried  by  any  club  or   committee.     For  weeks  and   months   the 

186 


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two   sides  locked  horns  over   this   question  in   the  council.     The  question   was 
finally  referred  back  to  the  entire  body  and  the  amendment  was  lost. 

F.  C.  A.  Executive  Secretary. — The  years  1900  and  1901  were  very  eventful 
in  making  F.  C.  A.  History,  for  in  1900  the  firm  created  the  Welfare  Manager's 
Office.  In  the  beginning,  the  welfare  manager  engaged  and  discharged '  the 
employees  of  the  store,  was  educational  director,  acted  as  intermediary  between 
the  Firm  and  the  people  or  between  one  person  and  another,  and  was  executive 
secretary  to  the  Filene  Co-operative  Association.  It  was  her  duty  to  assist  all 
F.  C.  A.  Boards  and  Committees  and  in  general  to  promote  the  objects  and 
principles  of  the  F.  C.  A.  and  oversee  the  general  welfare  of  employees. 

In  1907  this  office  was  changed  and  the  F.  C.  A.  now  has  an  Executive 
Secretary,  who  is  its  executive  and  administrative  head,  paid  by  the  store, 
appointed  by  the  President  of  the  F.  C.  A.,  and  confirmed  by  five-sixths  vote  of 
the  entire  council.  The  Secretary  acts  as  a  confidential  advisor  to  any  employee 
upon  any  matter  afTecting  her  or  his  personal  interest  in  the  store  or  as  a  mem- 
ber of  the  F.  C.  A.  He  also  acts  as  an  intermediary  between  the  Corporation 
and  the  people  or  between  one  person  and  another,  and  decides  what  is  fair 
and  just.  His  decision  is  an  acknowledged  factor  before  the  Store  Management 
in  the  final  adjustment  of  a  matter  on  appeal.  He  is  the  recognized  repre- 
sentative of  the  F.  C.  A,  and  of  employees'  interests  before  the  Store  Manage- 
ment and  the  Corporation. 

Entertainment  Committee  1900. — In  1899  we  had  our  first  summer  outing. 
The  Entertainment  Committee  was  not  formed,  however,  until  February,  1900, 
at  which  time  it  was  organized  to  take  charge  of  our  first  Store  Entertainment, 
the  beginning  of  the  social  affairs  of  the  F.  C.  A.  Our  summer  outings,  or  Field 
Days,  have  continued  to  the  present  year. 

F.  C.  A.  Bank  1900.— The  F.  C.  A.  Bank  was  established  in  1900.  In  a 
very  short  time  deposits  grew  so  large  that  in  order  to  safeguard  them  the  firm, 
with  the  consent  of  the  people,  took  charge  of  these  funds,  agreeing  to  pay 
five  per  cent,  on  all  sums  deposited  with  them.  The  deposits  draw  interest 
monthly;  interest  is  added  semi-annually.  On  December  31,  1913,  the  bank 
deposits  totalled  $71,800,  distributed  among  1619  employees,  76.6  per  cent,  of 
the  employees  in  the  store,  an  average  deposit  of  $44.36. 

The  Loan  Department  of  the  Bank  was  introduced  by  the  Board  of  Finance 
in  the  fall  of  1905.  This  was  done  to  meet  a  definite  need,  for  it  had  frequently 
happened  that  some  of  our  people  had  been  obliged  at  times  to  borrow  at  loan 
offices  small  sums  of  money  for  urgent  needs,  and  compelled  to  pay  exorbitant 
rates  of  interest.  Loans  are  made  to  employees  on  the  approval  of  the  Bank 
Officers  or  of  two  of  the  Directors.  Three  hundred  and  forty-two  amounting  to 
$7,934.50,  were  outstanding  December  31,  1913,  the  average  amount  of  each  loan 
being  $23.20.  Loans  for  more  than  a  person's  weekly  salary  are  made  only  on 
good  security.  The  maximum  charge  for  loans  to  employees  is  one  per  cent. 
a  month. 

Club  House  Comnvittee. — The  first  Club  House  opened  on  April  8,  1901. 
It  afforded  a  place  for  lunches,  with  conveniences  for  preparing  food,  and 
social  gathering  lectures,  musicales  and  whist  parties. 

At  the  present  time  the  Dining  Room  is  one  of  the  larger  departments  of 
F.  C.  A,  work,  and  is  patronized  every  day  by  about  twelve  hundred  people,  the 
average  lunch  check  being  13c.  In  addition  the  Lunch  Room  serves  each  day 
breakfasts  and  suppers.  It  also  furnishes  dinner  for  the  numerous  evening 
meetings  and  caters  to  parties,  dances  and  outings  of  store  people. 

187 


For  the  past  few  years  the  F.  C.  A.  Club  House  Committee  has  made  sub- 
stantial savings  for  employees  by  establishing  co-operative  buying.  For  instance, 
tor  the  past  few  years  it  has  bought  Thanksgiving  and  Christmas  turkeys ;  it 
has  established  Co-operative  Coal  Buying  and  Co-operative  Supply  Buying  by 
procuring  and  selling  household  necessities  at  practically  wholesale  prices.  At 
the  present  time,  the  Co-operative  Govery  store  does  an  average  business  of  $25 
a  day  on  groceries  and  $10  a  day  for  candy.  Meats  are  sold  on  immediate  order. 
Its  being  associated  with  the  employees'  restaurant  has  helped  considerably— 
an  important  factor  where  perishable  goods  are  to  be  considered. 

In  February,  1912,  a  Special  Co-operative  Supply  Committee  was  appointed, 
to  enlarge  and  develop  co-operative  buying,  not  only  of  food  stuffs,  but  of 
furniture  and  other  articles.  This  committee  for  a  time  operated  independently 
of  the  Club  House  Committee  and  sold  goods  at  exact  wholesale  cost.  But  in 
August,  1912,  the  Council  voted  to  have  this  buying  also  done  through  the  Club 
House  Committee. 

The  work  of  this  Committee  has  probably  meant  more  to  F.  C.  A.  members 
than  any  other,  except  the  Arbitration  Committee.  The  deterrent  factors  to 
greater  success  of  this  project  are  the  immediate  competition  of  the  cut-rate 
grocery  stores,  which  have  immense  buying  power,  and  the  fact  that  people  do 
not  like  to  carry  packages  in  crowded  cars. 

F.  C.  A.  "Echo"  Founded  in  1902.— As  the  store  grew  larger  some  recognized 
publicity  organ  of  F.  C.  A.  events  was  necessary,  in  order  that  all  members 
might  become  more  familiar  with  each  committee's  work  and  results.  Accord- 
ingly our  first  Store  paper  (The  Echo,  as  it  was  called)  was  published  by  the 
employees  on  July  1,  1902,  and  appeared  nearly  every  month  thereafter  until 
April  1,  1912,  when  The  Echo  became  a  weekly  paper. 

The  paper  is  open  to  all  for  contributions  of  news  items,  stories,  poems  or 
sketches  of  any  kind.  The  aim  is  to  make  The  Echo  a  newspaper  with  edu- 
cational features. 

Up  to  April  1,  1912,  The  Echo  paid  its  own  expenses  through  sales  of 
copies  and  by  contributions.  The  Store  Management,  however,  now  makes  a 
weekly  contribution  to  the  paper  but  has  no  voice  in  its  management,  nor  does 
It  see  the  matter  which  appears  in  its  columns  until  the  paper  is  printed. 

Athlctics.~ln  1904  the  Silver  League  Cup  was  won  by  the  F.  C.  A.  Baseball 
Club.  This  was  the  start  of  store  athletics.  Baseball,  track  athletics,  bowling, 
swimming,  hockey,  skating  and  other  athletics  have  since  been  carried  on  in  the 
F.  C.  A.,  as  a  rule  under  the  guidance  of  special  committees.  In  the  season 
1913-14,  for  instance,  the  association  was  represented  by  one  of  the  best  relay 
teams  in  Boston  and  has  been  engaged  in  several  competitive  meets  with  amateur 
athletic  organizations.  The  spirit  of  pure  amateurism  has  always  been  the  only 
standard,  and  early  the  Association  took  a  decided  stand  against  the  practice 
of  placing  athletes  on  the  payroll  in  order  that  they  might  play  on  various 
teams. 

In  February,  1905,  the  Athletic  Committee  was  created,  to  encourage  the 
formation  of  dancing  and  gymnasium  classes,  basket-ball  teams,  games,  or  any 
other  form  of  physical  exercise  of  general  or  social  benefit.  At  first  there  were 
about  25  women  under  the  direction  of  a  gymnastic  teacher;  then  all  the  women 
in  the  store  were  given  the  use  of  the  Normal  School  of  Gymnastics,  with  the 
privilege  of  shower  baths  under  the  direction  of  an  instructor. 

F.  C.  A.  Music  Committee— Founded  May,  1905.— The  F.  C.  A.  Music  Com- 
mittee is  appointed  to  furnish  musicales,  arrange  for  a  Choral  Society  of  F.  C.  A. 
members,  and  to  furnish  entertainments. 

188 


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A  notable  outgrowth  of  the  music  committee  is  the  Filene  Choral  Club, 
first  organized  in  1910.  The  first  Choral  Concert  was  given  in  the  store:  several 
followed  in  the  larger  Boston  halls,  and  in  1913  and  1914  very  ambitious  con- 
certs, followed  by  dancing,  were  the  rule.  But  aside  from  the  concerts,  the 
Choral  Club  has  done  noteworthy  work  in  providing  musical  training  for  those 
who  wished  to  benefit  by  it.  For  the  past  two  years,  the  growth  has  been 
steadily  upward,  and  the  Club  promises  to  be  one  of  the  best-known  and  best- 
liked  members  of  the  F.  C.  A.  family. 

First  F.  C.  A.  Cottage— Founded  Summer,  1905.— For  years  there  was  a 
demand  for  a  summer  camp  or  cottage  in  the  country  or  at  the  shore,  where 
F.  C.  A.  members  could  live  during  the  warm  weather  or  spend  their  vacations 
or  week-ends.  To  meet  this  demand  a  hostess  was  arranged  for  and  a  cottage 
was  hired  at  Winthrop  in  the  summer  of  1905.  The  next  year  a  Health  Camp 
at  Winthrop  was  rented,  and  again  in  1907  and  1910  cottages  were  hired. 

These  attempts  at  summer  cottages,  however,  raised  the  larger  question  of 
permanent  housing  quarters  for  F.  C.  A.  members,  and  special  committees  have 
investigated  the  question  of  building  groups  of  cottages  or  separate  houses  to  be 
let  to  members,  with  arrangements  whereby  the  rentals  could  be  applied  to 
payments  for  purchasing.  So  far,  however,  the  project  has  not  received  sufficient 
support  to  warrant  its  being  undertaken. 

F.  C.  A.  a  Stockholder.— In  December,  1906,  Wm.  Filene's  Sons  Company 
increased  their  capital  stock  from  $150,000  to  $400,000  and  sold  shares  to  execu- 
tives. At  the  same  time  a  gift  of  ten  shares  to  the  Filene  Co-operative  Asso- 
ciation was  made  by  Messrs.  E.  A.  and  A.  L.  Filene  in  memory  of  their  father, 
William  Filene,  the  founder  of  the  business.  The  F.  C.  A.  derives  a  certain 
amount  of  revenue  each  year  from  dividends  declared. 

Clubs. — As  the  F.  C.  A.  grew  larger  and  larger  and  the  difficulty  in  securing 
mass  meetings  became  greater,  smaller  groups  began  to  form. 

The  first  of  these  was  the  Girls'  Club,  organized  in  1907  as  an  outgrowth  of 
the  educational  classes.  The  purposes  of  the  Club  are  personal  development, 
increased  interest  in  the  F.  C.  A.  and  its  activities,  the  cultivation  of  sociability, 
mutual  helpfulness  among  our  girls,  and  the  increase  of  the  spirit  of  loyalty  to 
the  store.  In  the  early  fall  of  1912,  when  hundreds  of  new  girls  joined  the 
forces  at  the  opening  of  the  new  store,  this  club  was  divided  into  two  parts: 
one  for  girls  under  twenty-one  years  of  age,  called  the  Girls'  Club,  and  one  for 
young  women  over  twenty-one,  called  the  Young  Women's  Club.  Any  girl  or 
woman  employee  may  join. 

In  the  fall  of  1910  a  large  Men's  Club  was  organized  and  a  constitution 
drawn  up  and  accepted.  There  had  been  men's  clubs  and  boys'  clubs  in  the  store 
previously,  but  they  flourished  only  for  short  periods.  Many  pleasant  enter- 
tainments, and  lectures  by  well-known  men,  have  been  furnished  by  the  Club 
at  its  bi-monthly  dinner  meetings  in  the  Club  House.  The  object  of  the  Men's 
Club  is  to  help  its  members  by  furnishing  educational,  social,  and  recreative 
opportunities,  by  increasing  their  business  efficiency,  and  to  help  the  F.  C.  A. 
by  furthering  the  knowledge  of  self-government  and  industrial  democracy. 

Campfire  Groups. — In  1913,  following  along  the  lines  laid  down  by  the 
National  Campfire  Association,  several  groups  of  campfire  girls  in  the  store 
were  organized.  These  have  no  connection  with  the  F.  C.  A.  except  that  indi- 
vidually the  members  are  part  of  the  main  organization,  but  the  campfire  idea 
in  the  store  undoubtedly  received  its  stimulus  from  the  main  organization. 

189 


Profit  Sharing.— In  September,  1903,  the  corporation  put  into  effect  its  first 
profit-sharing  plan.  In  essence  this  plan  called  for  the  payment  of  a  certain 
proportion  of  the  department  profits  to  the  department  executives,  these  depart- 
ment profits  being  based  on  the  bill  price  of  the  merchandise  without  deduction 
for  discounts.  The  remaining  department  profits,  diminished  by  whatever  losses 
there  might  be  in  other  departments,  became  a  general  fund  in  which  all  execu- 
tives not  directly  connected  with  the  merchandise  departments  were  to  share. 
With  variations  this  plan  continued  until  the  new  store  opened  in  September, 
1912.  In  general  it  may  be  said  of  the  plan  that  while  considerable  sums  were 
paid  to  employees  under  it,  on  the  whole  it  was  a  failure,  especially  as  regards 
the  general  profit  sharers. 

The  new  store  into  which  the  business  entered  in  September,  1912,  contained 
nearly  three  times  the  space  of  the  former  premises  and  it  therefore  seemed 
best  to  make  specially  heavy  expenditures  in  that  year  in  order  to  establish 
a  much  larger  business  quickly.  For  this  reason  it  has  not  been  possible  to 
make  any  distribution  of  profits  among  the  employees,  but  the  following  has 
been  prepared  and  it  is  our  intention  it  shall  become  operative  as  soon  as  profit 
sharing  becomes  feasible. 

In  substance  the  plan  is  that  all  net  profits  remaining  after  the  payment  of 
dividends  on  the  preferred  and  on  the  common  stock,  which  represents  a  rea- 
sonable amount  paid  by  the  new  corporation  formed  upon  entering  into  the  new 
store  for  the  assets  of  the  former  business,  together  with  additional  capital 
invested,  and  also  such  sums  as  are  necessary  to  retire  stock,  etc.,  are  divided 
among  the  employees.  The  distribution  is  one-half  to  the  members  of  the 
Management  and  one-half  to  the  remaining  employees.  This  latter  one-half  is 
divided  among  the  employees  in  proportion  to  their  salaries.  In  order  to  reward 
specially  meritorious  service  a  Board  of  Apportionment  is  to  be  appointed 
annually  (consisting  of  three  members  selected  by  the  Filene  Co-operative 
Association,  three  by  the  Directors  of  the  corporation,  and  a  seventh  selected 
by  these  six),  which  has  power  to  award  persons  who  have  performed  such 
service  suitable  sums,  these  sums  being  deducted  from  the  half  paid  to  employees 
other  than  the  Management  before  the  distribution  is  made  on  the  basis  of 
salaries.  The  plan  also  provides  that  awards  out  of  net  profits  may  be  made 
to  the  F.  C.  .\.  before  anything  is  distributed  if  the  Directors  of  the  business 
so  decide. 

Bonuses. — In  addition  to  the  profit  sharing  additional  provision  has  been 
made  for  special  remuneration  to  be  deducted  before  net  profits  are  figured,  for 
increased  efficiency  in  due  proportion  to  individual  results  accomplished.  This 
is  in  the  form  of  payments  in  addition  to  the  fixed  wage,  consisting  of  bonuses 
to  department  executives,  extra  commissions  to  salespeople,  etc.,  for  the  achieve- 
ment of  especially  excellent  results  in  the  individual  departments.  There  is  some 
likelihood  that  this  bonus  idea  may  be  still  more  largely  applied,  the  basic  idea 
being  that  it  will  increase  efficiency  in  the  department  and  thus  increase  the 
amount  of  net  profit  to  be  distributed  to  profit  sharers. 

Self-Support. — All  who  have  followed  the  course  of  mutual  benefit  organi- 
zations know  that  they  disintegrate  if  treated  paternally.  One  reason  the  F.  C.  A. 
has  lived,  is  that  one  of  its  fundamental  principles  has  always  been  that  it 
should  be  not  only  self-governing  but  also  in  the  main  self-supporting.  While 
it  is  true  that  it  receives  in  many  ways  help  from  the  firm,  financially  and  other- 
wise, in  almost  every  case  there  is  a  direct  return  to  the  firm  in  increased 
efficiency  for  which  the  management  is  willing  to  pay.  A  notable  instance  of 
this  is  the  payment  of  fifty  dollars  weekly  toward  the  printing  of  the  Association 

190 


r 


'\ 


f    ▼  <» 


/ 


I 


organ,  The  Echo.  For  this  the  firm  receives  a  merchandise  advertisement 
once  each  week  and  the  opportunity  to  educate  the  employees  on  matters  that 
will  save  the  firm  money.  Then,  too,  the  firm  pays  the  salary  of  the  Executive 
Secretary  of  the  F.  C.  A.,  in  return  for  which  he  gives  help  to  employees  calcu- 
lated to  make  them  more  fit  for  their  daily  work  and  for  advancement.  The 
Club  House  pays  its  expenses  through  the  sale  of  food  and  groceries,  the 
Library  through  dues  for  books,  the  insurance  through  its  weekly  premiums, 
and  the  various  clubs  and  entertainment  features  through  dances,  minstrel  shows 
and  bazaars. 

Several  entertainments  given  each  year  by  the  various  clubs  have  become 
nxtures  in  the  store  calendar.  These  include  the  Girls'  Club  Dance,  the  Men's 
Club  Dance,  the  Choral  Club  Concert,  the  Annual  Field  Day,  the  Young  Women's 
Club  Dance,  the  Bowling  Banquet  and  this  year  a  new  feature,  the  Annual 
Bazaar. 

Bazaar  and  Exposition.— Wx^h.  up  in  the  list  of  affairs  that  fill  the  F.  C.  A. 
coffers  are  Bazaars  and  Expositions.  The  first  of  these  was  held  in  May,  1908, 
and  raised  six  hundred  dollars  toward  remodehng  the  Club  House.  In  1908 
the  first  F.  C.  A.  Exposition  was  held.  Besides  the  amusements,  the  walls  of 
the  Club  House  were  covered  with  charts  showing  the  progress  of  the 
Association. 

In  the  fall  of  1913  the  R  C.  A.  faced  a  serious  deficit.  Then  it  was  that 
the  greatest  of  all  bazaars  was  held.  Members  of  the  Association  from  the 
firm  down  allied  themselves  with  the  various  committees  to  make  it  a  success. 
For  three  nights  the  Club  House  was  a  blaze  of  color  and  three  different  enter- 
tainments—vaudeville, a  minstrel  show  and  concert— provided  amusement  for 
as  many  as  fifteen  hundred  at  one  time.  Dancing,  booths,  fortune  telling  and 
music  provided  other  means  of  enjoyment,  and  when  the  smoke  had  cleared 
away,  the  figures  showed  the  Association  nearly  $2,000  profit.  Never  had  the 
members  shown  greater  get-together  spirit — "Co-operation." 

"The  F.  C.  A.  Forever."— Tht  F.  C.  A.  has  now  an  organization  song,  "The 
F.  C.  A.  Forever,"  which,  in  1913,  was  written  and  published  by  two  men  mem- 
bers and  dedicated  to  the  Association.  It  is  original,  inspiring  and  of  good 
musical  quality  and  is  probably  unprecedented  in  organizations  of  a  like 
character. 

What  Results  Have  Been.—Aiter  all,  however,  movements  must  be  judged 
by  results— once  the  experimental  stage  is  passed.  So  it  is  not  enough  to  state 
that  the  F.  C.  A.  has  existed  for  sixteen  years  as  a  self-governing  and  largely 
self-supporting  body.  We  must  look  further  and  see  whether  such  an  Asso- 
ciation has  resulted  in  better  work,  a  better  personnel  and  greater  CO-OPER- 
ATION, for  that  is  the  foundation  stone  of  the  Association. 

Getting  together  and  co-operating  with  one  another  for  personal  growth  and 
enjoyment  comes  naturally  and  obviously  from  the  growth  of  the  organization. 
Co-operation  with  one  another  for  the  benefit  of  the  business— co-operation  with 
the  management  in  forwarding  their  projects  are  indirect  and  must  be  sought 
for  more  under  the  surface.  Nevertheless  they  exist  and  are  exerting  a  helpful 
influence  in  the  store. 

Personal  Interest  in  the  Business. — Because  they  are  so  banded  together  and 
have  a  personally  governed  organization  of  this  kind,  the  members  feel  a  per- 
sonal interest  in  its  success,  and  a  pride  in  the  business  that  makes  it  possible. 
They  have  been  taken  into  the  firm's  confidence.  They  have  come  to  learn  that 
the  best  interests  of  the  firm  are  their  own,  and  a  feeling  of  partnership  exists 

191 


which  does  more  than  coaxing  or  orders  to  make  them  work  to  make  the 
business  successful. 

Just  as  in  nations  self-government  has  proved  that  it  leads  to  a  higher 
social,  political  and  intellectual  development,  so  in  business  the  same  principles 
have  meant  a  growth  of  the  individual,  which  indirectly  benefits  the  business. 
And  this  individual  development  working  on  and  on  has  meant  newer  and  higher 
standards  and  a  better  personnel. 

The  employees  feel  a  greater  security  in  their  position,  for  they  have  con- 
stantly before  them  the  protection  that  their  arbitration  board — theirs,  for  it  is 
elected  and  governed  by  them — may  be  appealed  to  for  protection  against  un- 
fairness of  any  kind;  to  enforce  the  square  deal,  whether  it  be  in  petty  difficulties 
or  in  matters  of  wages,  position  or  reinstatement  after  discharge. 

Again,  many  a  round  peg  in  a  square  hole,  as  efficiency  experts  are  wont 
to  term  those  vocationally  misapplied,  can  prove  to  the  firm  that  he  or  she  is 
efficient  provided  they  are  merely  placed  in  a  position  where  that  efficiency  can 
have  a  wider  outlet. 

Special  Opportunities  a  Good  Influence. — Even  social  opportunities  are  not 
without  their  benefits  in  making  individual  members  better  men  and  women  for 
the  business.  The  spirit  of  friendliness,  the  commingling  with  their  fellows, 
has  worn  the  rough  edges  off  many  a  young  man  or  young  woman  who  came 
into  the  store  the  roughest  sort  of  material  and  who  in  a  few  years  became  a 
most  valued  member  of  the  store  family.  Character,  intelligence  and  personal 
responsil)ility  have  inevitably  improved  once  the  principles  and  ideals  of  the 
Association  were  grasped. 

F.  C.  A.  JVorks  Better  for  the  Business. — Direct  comparisons  have  made 
one  point  clear ;  always  the  man  or  woman  who  has  taken  part  in  F.  C.  A.  work, 
who  has  given  of  his  time  and  experience  to  help  the  movement,  has  helped 
himself  even  more  than  he  helped  the  Association,  and  come  out  of  such  work 
a  bigger  man,  and  a  better  man  for  the  firm  to  have  associated  with  it.  He  is 
more  apt  to  be  successful  all  round  than  the  man  who  stays  aloof,  as  happens  in, 
happily,  comparatively  few  cases. 

Summed  up,  the  F.  C.  A.  has  resulted  in  a  natural  loyalty,  a  feeling  of 
personal  responsibility  for  the  success  of  the  business,  a  spirit  of  help-one- 
another,  it  has  spelled  growth  for  the  individual,  efficiency  for  the  business ;  it 
is  easily  worth  what  it  has  cost  the  employee  in  his  time  and  money;  the  firm 
considers  it  worth  many  times  what  it  has  cost  them  in  their  time  and  money. 
It  is  no  longer  as  experiment ;  it  is  a  fact,  it  has  made  the  interests  of  employer 
and  employee  harmonize.  In  this  the  real  solution  of  just  and  efficient  relations 
between  employees  and  employers  lies. 

THE  GLOBE  WERNICKE  COMPANY,  Cincinnati,  Ohio. 

"We  have  a  sort  of  incipient  shop  committee  composed  of  six  members  who 
confine  themselves  almost  exclusively  to  the  consideration  of  improvements  of 
methods  and  machinery  in  one  department — the  one  which  requires  the  most 
nursing.  We  have  been  giving  each  member  of  this  committee  a  present  of  $100 
just  before  Christmas. 

**We  already  have  a  welfare  association,  which  is  supported  by  its  members 
and  is  assisted  by  us  whenever  assistance  is  needed." 

Personal  Opinion. — "Because  of  the  benefits  which  we  have  derived  from 
the  work  of  this  committee.  I  have  been  impressed  with  the  desirability  of 
enlarging  it  to  take  in  other  departments  and  to  enlarge  the  scope  in  the  direction 

192 


i      • 


hi  • 


*^ 


of  wages,  grievances,  discipline,  welfare,  etc.;  but  conditions  are  so  abnormal 
at  present  that  nothing  definite  in  this  direction  can  be  done  with  fair  hope 
of  success  and  I  do  not  want  it  to  break  down  because  of  being  started  at  the 
wrong  time. 

"My  personal  view  is  somewhat  reflected  in  what  I  have  said  above;  but 
I  may  add  that  I  am  keenly  interested  in  the  general  idea,  provided,  however, 
that  unionism  can  have  no  association  or  connection  with  it.  The  conviction 
has  been  growing  on  me  for  a  good  while  that  the  rank  and  file  of  our  employees 
ought  to  have  some  proper  means  of  expression  and  that  encouragement  ought 
to  be  offered  to  those  of  good  intentions  and  that  initiative  and  ability  should 
be  revealed  and  encouraged." — Mr.  N.  C.  Yeiser,  President. 

H.  P.  HOOD  &  SONS,  Milk,  Cream  and  Dairy  Products,  Boston,  Mass. 

"The  Hood  Council,"  on  which  is  a  representative  from  each  one  of  these 
centres,  elected  by  the  working  men.  In  addition  there  are  three  councillors- 
at-large  who  are  appointed  by  the  management.  This  Council  has  the  usual 
functions  of  shop  committees  and  most  anything  can  be  brought  up  at  its  meet- 
ings. The  question  of  wages  has  never  been  discussed,  although  there  is  nothing 
to  prevent  its  being  brought  up.  With  us  the  Council  has  never  been  very  active 
and  simply  seems  to  serve  as  a  means  of  obtaining  by  the  management  the  ideas 
and  thoughts  of  the  working  men,  giving  an  opportunity  to  anticipate  any  griev- 
ances on  the  part  of  the  men  before  they  have  gone  too  far.  The  mere  fact  of 
its  existence  seems  of  itself  to  be  a  source  of  confidence  on  the  part  of  the  men. 

"We  feel  that  it  has  served  a  useful  purpose  with  us,  namely,  to  keep  the 
management  in  closer  touch  with  the  men." 

THE  HART  SCHAFFNER  &  MARX  Labor  Agreement 

A  Compilation  and  Codification  of  the  Agreements  of  1911,  1913  and  1916  and 
Decisions  Rendered  by  the  Board  of  Arbitration — 
(Published  by  the  Company,  1916.) 

Preamble 

The  parties  whose  names  are  signed  hereto  purpose  entering  into  an  agree- 
ment for  collective  bargaining  with  the  intention  of  agreeing  on  wage  and 
working  conditions  and  to  provide  a  method  for  adjusting  any  differences  that 
may  arise  during  the  term  of  this  contract. 

In  order  that  those  who  have  to  interpret  this  instrument  may  have  some 
guide  as  to  the  intentions  and  expectations  of  the  parties  when  entering  into  this 
compact,  they  herewith  make  record  of  their  spirit  and  purpose,  their  hope  and 
expectations,  so  far  as  they  are  now  able  to  forecast  or  state  them. 

On  the  part  of  the  employer  it  is  the  intention  and  expectation  that  this 
compact  of  peace  will  result  in  the  establishment  and  maintenance  of  a  high 
order  of  discipline  and  efficiency  by  the  willing  co-operation  of  union  and 
workers  rather  than  by  the  old  method  of  surveillance  and  coercion;  that  by 
the  exercise  of  this  discipline  all  stoppages  and  interruptions  of  work,  and  all 
wilful  violations  of  rules  will  cease;  that  good  standards  of  workmanship  and 
conduct  will  be  maintained  and  a  proper  quantity,  quality  and  cost  of  production 
will  be  assured;  and  that  out  of  its  operation  will  issue  such  co-operation  and 
good  will  between  employers,  foremen,  union  and  workers  as  will  prevent  mis- 
understanding and  friction  and  make  for  good  team  work,  good  business,  mutual 
advantage  and  mutual  respect. 

193 


NTENTJONAL  SECOND  EXPOSURE 


which  does  more  than  coaxing  or  orders  to  make  them  work  to  make  the 
business  successful. 

Just  as  in  nations  self-government  has  proved  that  it  leads  to  a  higher 
social,  political  and  intellectual  development,  so  in  business  the  same  principles 
have  meant  a  growth  of  the  individual,  which  indirectly  benefits  the  business. 
And  this  individual  development  working  on  and  on  has  meant  newer  and  higher 
standards  and  a  better  personnel. 

The  employees  feel  a  greater  security  in  their  position,  for  they  have  con- 
stantly before  them  the  protection  that  their  arbitration  board— theirs,  for  it  is 
elected  and  governed  by  them — may  be  appealed  to  for  protection  against  un- 
fairness of  any  kind;  to  enforce  the  square  deal,  whether  it  be  in  petty  difficulties 
or  in  matters  of  wages,  position  or  reinstatement  after   discharge. 

Again,  many  a  round  peg  in  a  square  hole,  as  efficiency  experts  are  wont 
to  term  those  vocationally  misapplied,  can  prove  to  the  firm  that  he  or  she  is 
efficient  provided  they  are  merely  placed  in  a  position  where  that  efficiency  can 
have  a  wider  outlet. 

Special  Opportunities  a  Good  Influence.— Even  social  opportunities  are  not 
without  their  benefits  in  making  individual  members  better  men  and  women  for 
the  business.  The  spirit  of  friendliness,  the  commingling  with  their  fellows, 
has  worn  the  rough  edges  off  many  a  young  man  or  young  woman  who  came 
into  the  store  the  roughest  sort  of  material  and  who  in  a  few  years  became  a 
most  valued  member  of  the  store  family.  Character,  intelligence  and  personal 
responsibility  have  inevitably  improved  once  the  principles  and  ideals  of  the 
Association  were  grasped. 

F.  C.  A.  Works  Better  for  the  Business. — Direct  comparisons  have  made 
one  point  clear ;  always  the  man  or  woman  who  has  taken  part  in  F.  C.  A.  work, 
who  has  given  of  his  time  and  experience  to  help  the  movement,  has  helped 
himself  even  more  than  he  helped  the  Association,  and  come  out  of  such  work 
a  bigger  man.  and  a  better  man  for  the  firm  to  have  associated  with  it.  He  is 
more  apt  to  be  successful  all  round  than  the  man  who  stays  aloof,  as  happens  in, 
happily,  comparatively  few  cases. 

Summed  up,  the  F.  C.  A.  has  resulted  in  a  natural  loyalty,  a  feeling  of 
personal  responsibility  for  the  success  of  the  business,  a  spirit  of  help-one- 
anothcr.  it  has  spelled  growth  for  the  individual,  efficiency  for  the  business;  it 
is  easily  worth  what  it  has  cost  the  employee  in  his  time  and  money;  the  firm 
considers  it  worth  many  times  what  it  has  cost  them  in  their  time  and  money. 
It  is  no  longer  as  experiment ;  it  is  a  fact,  it  has  made  the  interests  of  employer 
and  employee  harmonize.  In  this  the  real  solution  of  just  and  efficient  relations 
between  employees  and  employers  lies. 

THE  GLOBE  WERNICKE  COMPANY,  Cincinnati,  Ohio. 

"We  have  a  sort  of  incipient  shop  committee  composed  of  six  members  who 
confine  themselves  almost  exclusively  to  the  consideration  of  improvements  of 
methods  and  machinery  in  one  department— the  one  which  requires  the  most 
nursing.  We  have  been  giving  each  member  of  this  committee  a  present  of  $100 
just  before  Christmas. 

"We  already  have  a  welfare  association,  which  is  supported  by  its  members 
and  is  assisted  by  us  whenever  assistance  is  needed." 

Personal  Opinion. — "Because  of  the  benefits  which  we  have  derived  from 
the  work  of  this  committee,  I  have  been  impressed  with  the  desirability  of 
enlarging  it  to  take  in  other  departments  and  to  enlarge  the  scope  in  the  direction 

192 


f 


/ 


\   ' 


J 


of  wages,  grievances,  discipline,  welfare,  etc.;  but  conditions  are  so  abnormal 
at  present  that  nothing  definite  in  this  direction  can  be  done  with  fair  hope 
of  success  and  I  do  not  want  it  to  break  down  because  of  being  started  at  the 
wrong  time.  ' 

"My  personal  view  is  somewhat  reflected  in  what  I  have  said  above;  but 
I  may  add  that  I  am  keenly  interested  in  the  general  idea,  provided,  however, 
that  unionism  can  have  no  association  or  connection  with  it.  The  conviction 
has  been  growing  on  me  for  a  good  while  that  the  rank  and  file  of  our  employees 
ought  to  have  some  proper  means  of  expression  and  that  encouragement  ought 
to  be  offered  to  those  of  good  intentions  and  that  initiative  and  ability  should 
be  revealed  and  encouraged." — Mr.  N.  C.  Yeiser,  President. 

H.  P.  HOOD  &  SONS,  Milk,  Cream  and  Dairy  Products,  Boston,  Mass. 

"The  Hood  Council,"  on  which  is  a  representative  from  each  one  of  these 
centres,  elected  by  the  working  men.  In  addition  there  are  three  councillors- 
at-large  who  are  appointed  by  the  management.  This  Council  has  the  usual 
functions  of  shop  committees  and  most  anything  can  be  brought  up  at  its  meet- 
ings. The  question  of  wages  has  never  been  discussed,  although  there  is  nothing 
to  prevent  its  being  brought  up.  With  us  the  Council  has  never  been  very  active 
and  simply  seems  to  serve  as  a  means  of  obtaining  by  the  management  the  ideas 
and  thoughts  of  the  working  men,  giving  an  opportunity  to  anticipate  any  griev- 
ances on  the  part  of  the  men  before  they  have  gone  too  far.  The  mere  fact  of 
its  existence  seems  of  itself  to  be  a  source  of  confidence  on  the  part  of  the  men, 

"We  feel  that  it  has  served  a  useful  purpose  with  us,  namely,  to  keep  the 
management  in  closer  touch  with  the  men." 

THE  HART  SCHAFFNER  &  MARX  Labor  Agreement 

A  Compilation  and  Codification  of  the  Agreements  of  1911,  1913  and  1916  and 
Decisions  Rendered  by  the  Board  of  Arbitration — 
{Published  by  the  Company,  1916.) 

Preamble 

The  parties  whose  names  are  signed  hereto  purpose  entering  into  an  agree- 
ment for  collective  bargaining  with  the  intention  of  agreeing  on  wage  and 
working  conditions  and  to  provide  a  method  for  adjusting  any  differences  that 
may  arise  during  the  term  of  this  contract. 

In  order  that  those  who  have  to  interpret  this  instrument  may  have  some 
guide  as  to  the  intentions  and  expectations  of  the  parties  when  entering  into  this 
compact,  they  herewith  make  record  of  their  spirit  and  purpose,  their  hope  and 
expectations,  so  far  as  they  are  now  able  to  forecast  or  state  them. 

On  the  part  of  the  employer  it  is  the  intention  and  expectation  that  this 
compact  of  peace  will  result  in  the  establishment  and  maintenance  of  a  high 
order  of  discipline  and  efficiency  by  the  willing  co-operation  of  union  and 
workers  rather  than  by  the  old  method  of  surveillance  and  coercion ;  that  by 
the  exercise  of  this  discipline  all  stoppages  and  interruptions  of  work,  and  all 
wilful  violations  of  rules  will  cease;  that  good  standards  of  workmanship  and 
conduct  will  be  maintained  and  a  proper  quantity,  quality  and  cost  of  production 
will  be  assured;  and  that  out  of  its  operation  will  issue  such  co-operation  and 
good  will  between  employers,  foremen,  union  and  workers  as  will  prevent  mis- 
understanding and  friction  and  make  for  good  team  work,  good  business,  mutual 
advantage  and  mutual  respect. 

193 


On  the  part  of  the  union  it  is  the  intention  and  expectation  that  this  com- 
pact will,  with  the  co-operation  of  the  employer,  operate  in  such  a  way  as  to 
maintain,  strengthen,  and  soHdify  its  organization,  so  that  it  may  be  made  strong 
enough,  and  efficient  enough,  to  co-operate  as  contemplated  in  the  preceding 
paragraph;  and  also  that  it  may  be  strong  enough  to  command  the  respect  of 
the  employer  without  being  forced  to  resort  to  militant  or  unfriendly  measures. 

On  the  part  of  the  workers  it  is  the  intention  and  expectation  that  they 
pass  from  the  status  of  wage  servants,  with  no  claim  on  the  employer  save  his 
economic  need,  to  that  of  self-respecting  parties  to  an  agreement  which  they 
have  had  an  equal  part  with  him  in  making;  that  this  status  gives  them  an 
assurance  of  fair  and  just  treatment  and  protects  them  against  injustice  or 
oppression  of  those  who  may  have  been  placed  in  authority  over  them;  that 
they  will  have  recourse  to  a  court,  in  the  creation  of  which  their  votes  were 
equally  potent  with  that  of  the  employer,  in  which  all  their  grievances  may  be 
heard,  and  all  their  claims  adjudicated;  that  all  changes  during  the  life  of  the 
pact  shall  be  subject  to  the  approval  of  an  impartial  tribunal,  and  that  wages 
and  working  conditions  shall  not  fall  below  the  level  provided  for  in  the 
agreement. 

The  parties  to  this  pact  realize  that  the  interests  sought  to  be  reconciled 
herein  will  tend  to  pull  apart,  but  they  enter  it  in  the  faith  that  by  the  exercise 
of  the  co-operative  and  constructive  spirit  it  will  be  possible  to  bring  and  keep 
them  together.  This  will  involve  as  an  indispensable  pre-requisite  the  total 
suppres.sion  of  the  militant  spirit  by  both  parties  and  the  development  of  reason 
instead  of  force  as  the  rule  of  action.  It  will  require  also  mutual  consideration 
and  concession,  a  willingness  on  the  part  of  each  party  to  regard  and  serve  the 
mterests  of  the  other,  so  far  as  it  can  be  done  without  too  great  a  sacrifice  of 
principle  or  interest.  With  this  attitude  assured  it  is  believed  no  differences 
can  arise  which  the  joint  triliunal  cannot  mediate  and  resolve  in  the  interest  of 
co-operation  and  harmony. 

Section   I. — Admintstration 

This  agreement  is  entered  into  between  Hart  Schaffner  &  Marx,  a  corpora- 
tion, and  the  Almalgamated  Clothing  Workers  of  America,  and  is  effective  from 
May  1,  1916  to  April  30,  1919. 

Officers  of  the  Agreement. — The  administration  of  this  agreement  is  vested 
in  a  Board  of  Arbitration  and  a  Trade  Board,  together  with  such  deputies, 
officials  and  representatives  of  the  parties  hereto  as  are  now  or  hereafter  may 
be  appointed  for  that  purpose,  whose  duties  and  powers  are  hereinafter  described. 

Board  <>t  Arbitration. — The  Board  of  Arbitration  shall  have  full  and  final 
jurisdiction  over  all  matters  arising  under  this  agreement  and  its  decisions  there- 
upon shall  be  conclusive. 

It  shall  consist  of  three  members,  one  of  whom  shall  be  chosen  by  the 
union,  one  by  the  company,  and  the  third  shall  be  the  mutual  choice  of  both 
parties  hereto  and  shall  be  the  chairman  of  the  Board.  It  is  agreed  that  the 
Board  as  constituted  under  the  old  agreement  shall  be  continued  during  the 
present  agreement,  William  O.  Thompson  being  the  choice  of  the  union.  Carl 
Meyer,  the  choice  of  the  company  and  J.  E.  Williams,  chairman,  being  chosen 
by  agreement  of  both  parties. 

It  shall  be  the  duty  of  the  Board  to  investigate,  and  to  mediate  or  adjudicate 
all  matters  that  are  brought  before  it  and  to  do  all  in  its  power  to  insure  the 
f;uccessful  working  of  the  agreement.  In  reaching  its  decisions  the  Board  is 
expected  to  have  regard  to  the  general  principles  of  the  agreement;  the  spirit 

194 


and  intent,  expressed  or  implied,  of  the  parties  thereto;  and,  especially,  the 
necessity  of  making  the  instrument  workable,  and  adaptable  to  varying  needs 
and  conditions,  while  conserving  as  fully  as  possible  the  essential  interests  of 
the  parties  involved. 

The  line  of  practice  already  developed  by  the  Board  shall  be  continued. 
This  contemplates  that  questions  of  fact  and  testimony  shall  in  the  main  be 
considered  by  the  Trade  Board  while  the  Board  of  Arbitration  will  concern 
itself  mainly  with  questions  of  principle  and  the  application  of  the  agreement 
to  new  issues  as  they  arise.  But  this  is  not  to  be  construed  as  limiting  the 
power  of  the  Board,  which  is  broad  enough  to  make  it  the  judge  of  facts  as  well 
as  principle  when  necessary,  and  to  deal  with  any  question  that  may  arise 
whose  disposition  is  essential  to  the  successful  working  of  the  agreement. 

By  agreement  between  the  chief  deputies,  cases  may  be  heard  and  decided 
by  the  chairman  of  the  Board  alone. 

Emergency  Powers. — If  there  shall  be  a  general  change  in  wages  or  hours 
in  the  clothing  industry,  which  shall  be  sufficiently  permanent  to  warrant  the 
belief  that  the  change  is  not  temporary,  then  the  Board  shall  have  power  to 
determine  whether  such  change  is  of  so  extraordinary  a  nature  as  to  justify 
a  consideration  of  the  question  of  making  a  change  in  the  present  agreement, 
and,  if  so,  then  the  Board  shall  have  power  to  make  such  changes  in  wages  or 
hours  as  in  its  judgment  shall  be  proper. 

Trade  Board. — The  Trade  Board  is  the  primary  board  for  adjusting  griev- 
ances, and  shall  have  original  jurisdiction  over  all  matters  arising  under  this 
agreement  and  the  decisions  relating  thereto,  and  shall  consider  and  dispose  of 
all  such  matters  when  regularly  brought  before  it,  subject  to  such  rules  of 
practice  and  procedure  as  are  now  or  may  be  hereafter  established. 

The  Board  shall  consist  of  eleven  members,  all  of  whom  excepting  the 
chairman,  shall  be  employees  of  Hart  Schaffner  &  Marx.  Five  members  shall 
be  chosen  by  the  company,  and  five  by  the  union,  and  it  is  understood  that  these 
shall  be  selected  in  such  manner  as  to  be  representative  of  the  various  depart- 
ments— cutting  and  trimming,  coat,  vest  and  trousers. 

The  Board  shall  be  presided  over  by  a  chairman  who  shall  represent  the 
mutual  interests  of  both  parties  hereto,  and  especially  the  interest  of  the  suc- 
cessful working  of  this  agreement.  He  shall  preside  at  meetings  of  the  Board, 
assist  in  investigation  of  complaints,  endeavor  to  mediate  conflicting  interests, 
and,  in  case  of  disagreement,  shall  cast  the  deciding  vote  on  questions  before 
the  Board.  He  shall  also  act  as  umpire  on  the  cutting  room  commission,  and 
perform  such  other  duties  as  may  be  required  of  him  by  the  agreement  or  by 
the  Board  of  Arbitration. 

The  chairman  shall  hold  office  during  the  term  of  the  agreement,  and  in 
case  of  death,  resignation,  or  inability  to  act,  the  vacancy  shall  be  filled  by 
the  Board  of  Arbitration. 

It  is  especially  agreed  that  James  Mullenbach,  chairman  under  the  former 
agreement,  shall  be  retained  under  the  present  agreement. 

Meetings  of  the  Board  shall  be  held  whenever  necessary  at  such  times  as 
the  chairman  shall  direct.  Whenever  an  authorized  representative  of  both 
parties  is  present,  it  shall  be  considered  a  quorum.  Each  party  is  privileged  to 
substitute  an  alternate  in  place  of  the  regular  member  whenever  they  so  desire. 
Should  either  side,  after  reasonable  notice,  fail  to  send  a  representative  to  sit 
on  the  Trade  Board,  then  the  chairman  may  proceed  the  same  as  if  both  parties 
were  present. 

195 


Members  of  the  Board  shall  be  certified  in  writing  to  the  chairman  by  the 
Joint  Board  of  Hart  Schaffner  &  Marx,  and  the  proper  official  of  the  company 
and  any  member,  other  than  the  chairman,  may  be  removed  and  replaced  by 
the  power  appointing  him. 

Deputies. — The  deputies  are  the  officers  having  direct  charge  of  the  execu- 
tion of  the  provisions,  of  this  agreement  in  the  interest  of  their  respective 
principles.  Each  of  the  parties  hereto  shall  have  a  sufficient  number  of  deputies 
to  properly  take  care  of  the  work  necessary  to  be  done  to  keep  the  docket  from 
being  clogged  with  complaints,  and  to  insure  an  efficient  working  of  the  agree- 
ment. They  shall  have  power  to  investigate,  mediate,  and  adjust  complaints, 
and  settlements  made  by  the  deputies  of  the  parties  in  dispute  shall  be  legally 
binding  on  their  principals.  In  case  of  appeal  to  the  Trade  Board  or  Board  of 
Arbitration  the  deputies  may  request  their  respective  principals  before  these 
Boards,  and  shall  have  power  to  summon  and  examine  witnesses,  to  present 
testimony  or  evidence,  and  do  such  other  things  as  may  be  necessary  to  place 
their  case  properly  before  the  trial  body,  and  such  body  shall  see  to  it  that  they 
be  given  adequate  opportunity  and  facility  for  such  presentation,  subject  to  the 
usual  rules  of  procedure. 

One  of  the  deputies  on  each  side  shall  be  known  as  the  chief  deputy,  and 
the  statement  of  the  chief  deputy  shall  be  regarded  as  an  authoritative  presen- 
tation of  the  position  of  his  principal  in  any  matter  in  controversy.  Unless 
reversed  or  modified  by  either  of  the  Trial  Boards  the  agreement  of  the  chief 
deputies  in  all  matters  over  which  they  or  their  principals  have  authority  shall 
be  observed  by  all  parties. 

The  union  deputy  shall  have  access  to  any  shop  or  factory  for  the  purpose 
of  making  investigations  of  complaints ;  but  he  shall  in  all  cases  be  accompanied 
by  the  representative  of  the  employer.  Provided,  that  the  latter  may  at  his 
option  waive  his  right  to  accompany  him,  also  that  in  minor  matters  where 
convenience  or  expedition  may  be  served  the  union  deputy  may  call  out  the  shop 
chairman  to  obtain  information  without  such  waiver. 

The  deputies  shall  be  available  to  give  their  duties  prompt  and  adequate 
attention,  and  shall  be  subject  to  the  direction  of  the  Trade  Board  in  all  matters 
relating  to  the  administration  of  this  agreement. 

Qualifications  of  Deputies. — Each  deputy,  in  order  to  qualify  for  duty,  must 
have  a  commission  signed  by  the  proper  official  representing  the  union  or  the 
company,  and  said  commission  must  be  countersigned  by  the  chairman  of  the 
Trade  Board.  Deputies  must  be  either  employees  of  Hart  Schaffner  &  Marx, 
or  must  be  persons  who  are  connected  with  the  Joint  Board  of  Hart  Schaffner 
&  Marx. 

Shop  Representative. — The  union  shall  have  in  each  shop  a  duly  accredited 
representative  authorized  by  the  Joint  Board  who  shall  be  recognized  as  the 
officer  of  the  union  having  charge  of  complaints  and  organization  matters  within 
the  shop.  He  shall  be  empowered  to  receive  complaints  and  be  given  sufficient 
opportunity  and  range  of  action  to  enable  him  to  make  proper  inquiry  concern- 
ing them.  When  necessary  for  the  shop  representative  to  leave  his  place  to 
investigate  complaints  the  foreman  may,  if  he  deems  it  necessary,  ask  to  be 
informed  of  the  purpose  of  his  movements,  and  the  representative  shall  comply 
with  his  request. 

It  is  understood  the  shop  representative  shall  be  entitled  to  collect  dues 
and  perform  such  other  duties  as  may  be  imposed  on  him  by  the  union,  provided 
they  be  performed  in  such  manner  as  not  to  interfere  with  shop  discipline  and 
efficiency. 

196 


It  is  expected  that  he  will  represent  the  co-operative  spirit  of  the  agreement 
in  the  shop,  and  shall  be  the  leader  in  promoting  that  amity  and  spirit  of  good 
will  which  it  is  the  purpose  of  this  instrument  to  establish. 

The  co-operative  spirit  enjoined  on  the  shop  representative  in  the  foregoing 
paragraph  shall  be  expected  in  equal  degree  from  the  shop  superintendent,  who 
shall  be  expected  to  contribute  his  best  efforts  to  promote  harmony  and  good  will 
in  the  shops. 

Section  II. — Procedure 

When  Grievances  Arise.— VJhen  a  grievance  arises  on  the  floor  of  the  shop, 
the  complainant  shall  report  it  with  reasonable  promptness  to  the  shop  repre- 
sentative, who  shall  present  it  without  undue  delay  to  the  shop  superintendent. 
These  two  may  discuss  the  complaint  in  a  judicial  temper,  and  may  endeavor 
to  agree  to  an  adjustment.  It  is  understood,  however,  that  they  are  not  a  trial 
board,  and  it  is  not  expected  that  they  shall  argue  or  dispute  over  the  case.  In 
the  event  that  the  shop  representative  is  not  satisfied  with  the  action  of  the 
superintendent,  he  may  promptly  report  the  matter  to  his  deputy,  with  such 
information  as  will  enable  him  to  deal  advisedly  with  the  case. 

Failure  to  comply  with  these  provisions  for  the  regulation  of  shop  transac- 
tions shall  subject  the  offender  to  discipline  by  the  Trade  Board. 

Informal  oral  adjustments  made  by  shop  officials  are  subject  to  revision  by 
the  Trade  Board,  and  are  not  binding  on  their  principals  unless  ratified  by  the 
chief  deputies. 

Adjustment  by  Deputies.— When  the  shop  officers  report  a  disputed  com- 
plaint to  their  respective  deputies,  they  shall  give  it  such  investigation  as  its 
nature  or  importance  demands,  either  by  visitation  to  the  shop  or  by  the  taking 
of  testimony,  and  shall  make  an  earnest  endeavor  to  reach  a  settlement  that 
will  be  just  and  satisfactory  to  all  the  parties  in  dispute. 

Disagreement  by  Deputies. — In  the  event  of  a  failure  to  agree  on  an  adjust- 
ment, the  deputies  shall  certify  the  case  for  trial  to  the  Trade  Board,  agreeing 
on  a  written  statement  of  facts  if  possible.  In  certifying  such  disagreement  the 
deputy  to  the  Board  shall  file  a  statement  stating  specifically  the  nature  of  the 
complaint  alleged  with  the  Trade  Board,  and  shall  furnish  a  copy  to  the  repre- 
sentative of  the  dissenting  party  who  shall  have,  at  least,  twenty-four  hours  to 
prepare  his  answer,  unless  otherwise  agreed  on;  provided,  tha\  by  direction  of 
the  chairman  of  the  Trade  Board  emergency  cases  may  be  brought  to  trial  at 
o-ice.  Where  no  statement  has  been  filed  in  writing  within  a  reasonable  time 
after  disagreement  of  the  deputies,  it  may  be  assumed  that  the  disagreement  no 
longer  exists,  and  the  case  may  be  considered  settled. 

Docket  and  Records. — The  chairman  of  the  Trade  Board  shall  keep  a  docket 
in  which  all  cases  shall  be  entered  in  the  order  of  their  arising.  Unless  other- 
wise directed  by  the  chairman,  cases  shall  be  heard  in  the  order  of  their  filing. 
Duplicate  records  shall  be  made  by  the  Board,  one  copy  of  which  shall  be 
retained  by  the  chairman,  and  one  given  to  the  chief  deputy  for  the  union.  Such 
records  shall  contain  all  complaints  filed  with  the  Board;  orders  or  decisions  of 
the  Board,  or  of  the  deputies  or  of  any  committee;  calendars  of  pending  cases, 
and  such  other  matter  as  the  Trade  Board  may  order  placed  upon  the  records. 

Direct  Complaints. — Complaints  may  be  made  directly  by  either  party,  with- 
out the  intervention  of  a  shop  representative,  whenever  it  desires  to  avail  itself 
of  the  protection  of  the  agreement;  but  a  statement  of  the  facts  and  grounds 
of  such  complaints  must  be  filed  in  writing  as  hereinbefore  provided.     Unless 

197 


written  notice  has  been  filed,  it  may  be  presumed,  officially,  that  no  complaint 

exists. 

Decisions,  Appeals,  Etc. — All  decisions  of  the  Trade  Board  shall  be  in  writ- 
ing, and  copies  given  to  the  representatives  of  each  party.  Should  either  party 
desire  to  appeal  from  the  decision,  it  shall  file  with  the  Board  a  notice  of  its 
intention  so  to  do  within  ten  days  of  the  date  of  the  decision.  Or  if  either 
party  desires  an  amendment  or  modification  of  the  decision,  or  a  stay  of  execu- 
tion pending  the  appeal,  it  may  make  a  motion  in  writing  to  that  effect,  and  the 
chairman  shall  use  his  discretion  in  granting  it.  In  certifying  the  case  to  the 
Board  of  Arbitration,  the  chairman  shall  make  a  summary  of  the  case  in  writ- 
ing, giving  the  main  facts  and  the  grounds  for  his  decision. 

Number  of  Higher  Trial  Board. — On  being  notified  of  the  appeal  to  the 
Board  of  Arbitration,  said  appeal  may  be  heard  by  the  chairman,  as  repre- 
sentative of  the  Board,  if  both  parties  agree  to  it  and  it  is  acceptable  to  him. 
He  shall,  however,  have  the  right  to  call  for  the  full  board  if  in  his  judgment 
the  situation  requires  it.  In  the  event  that  the  representative  of  the  Board  of 
either  party  is  unable  to  attend  a  Board  meeting,  such  party  may,  at  its  dis- 
cretion, furnish  a  substitute. 

Hearing;  Hozu  Conducted. — The  chairman  shall  determine  the  time  and 
place  of  meeting  and  shall  notify  all  the  parties  in  interest.  Each  party  shall 
prepare  the  case  in  advance,  and  have  its  testimony,  evidence,  and  facts  in  readi- 
ness for  the  hearing.  The  Board  shall  give  each  party  ample  opportunity  to 
present  its  case,  but  shall  be  the  judge  of  procedure  and  shall  direct  the  hearing 
as  to  its  order  and  course.  After  graving  an  adequate  hearing  of  the  evidence 
and  arguments  the  Board  shall  render  its  decision  is  writing,  and  shall  furnish 
copies  to  the  chief  deputies  of  each  party  and  to  the  chairman  of  the  Trade 
Board.  In  the  event  that  the  Board  is  unable  to  reach  a  unanimous  decision, 
the  decision  of  a  majority  shall  be  binding. 

Motions  for  Rehearing. — The  Board  may,  after  a  reasonable  time,  grant  a 
rehearsing  of  any  decision,  if,  in  its  judgment,  there  appears  sufficient  reason 
for  doing  so.  Decisions  are  to  be  regarded  as  the  Board's  best  solution  of  the 
problem  offered  to  it  at  the  time  of  hearing,  but  as  the  problem  changes  with 
time  and  experience  it  is  proper  there  should  be  afforded  a  reasonable  oppor- 
tunity for  rehearing  and  review.  Motions  for  a  rehearing  shall  be  made  in 
writing,  and  shall  set  forth  the  reason  for  the  request. 

Enforcement  of  Deeisioss. — All  decisions,  whether  of  deputies.  Trade  Board, 
or  Board  of  Arbitration,  shall  be  put  into  execution  within  a  reasonable  time, 
and  failure  to  do  so,  unless  for  explainable  cause,  shall  convict  the  delinquent 
party  of  disloyalty  to  the  agreement.  The  party  in  error  shall  be  notified  of 
the  charge,  and  suitable  discipline  imposed.  The  chief  deputy  of  each  party 
shall  be  held  responsible  in  the  first  instance,  for  enforcement  of  decisions  or 
adjustments  herein  referred  to,  and  shall  be  held  answerable,  primarily,  to  the 
Trial   Board. 

Section  III. — Rates  and  Hours 

[This  Section  contains  provisions  relating  to  hours,  minimum  rates  of  images, 
overtime,  etc.  H  contains  the  following  tzvo  paragraphs  relating  to  the  Piece 
Rate  Committee.] 

Piece  Rate  Committee. — Whenever  a  change  of  piece  rate  is  contemplated 
the  matter  shall  be  referred  to  a  specially  appointed  rate  committee  who  shall 
fix  the  rate  according  to  the  change  of  work.     If  the  committee  disagrees  the 

198 


*■ 


•■ 


< 


Trade  Board  fix  the  rate.  In  fixing  the  rates,  the  Board  is  restricted  to  the 
following  rule : 

Changed  rates  must  correspond  to  the  changed  work  and  new  rates  must 
be  based  upon  old  rates  where  possible. 

Changing  Operations.— In  the  event  a  piece  worker  is  required  to  change  his 
mode  of  operation  so  that  it  causes  him  to  lose  time  in  learning,  his  case  may 
be  brought  to  the  Rate  Committee  for  its  disposition. 

Section   IV. — Preference 

The  Preferential  Shop.— It  is  agreed  that  the  principle  of  the  preferential 
shop  shall  prevail,  to  be  applied  in  the  following  manner: 

Preference  shall  be  applied  in  hiring  and  discharge.  Whenever  the  em- 
ployer needs  additional  workers,  he  shall  first  make  application  to  the  union, 
specifying  the  number  and  kind  of  workers  needed.  The  union  shall  be  given 
a  reasonable  time  to  supply  the  specified  help,  and  if  it  is  unable,  or  for  any 
reason  fails  to  furnish  the  required  people,  the  employer  shall  be  at  liberty  to 
secure  them  in  the  open  market  as  best  he  can. 

In  like  manner,  the  principle  of  preference  shall  be  applied  in  case  of  dis- 
charge. Should  it  at  any  time  become  necessary  to  reduce  the  force  in  con- 
formity with  the  provisions  of  this  agreement  the  first  ones  to  be  dismissed 
shall  be  those  who  are  not  members  of  the  union  in  good  and  regular  standing. 

Discipline  of  Union  Members.— The  Trade  Board  and  Board  of  Arbitration 
are  authorized  to  hear  complaints  from  the  union  concerning  the  discipline  of 
its  members  and  to  take  any  action  necessary  to  conserve  the  interests  of  the 
agreement.  The  members  referred  to  herein  are  those  who  have  joined,  or 
who  may  hereafter  join,  the  Amalgamated  Clothing  Workers  of  America. 

Preference  in  Transfers.— U  it  becomes  necessary  to  transfer  workers  from 
one  shop  to  another,  the  non-union  workers  shall  be  the  first  to  be  transferred, 
unless  at  request  of  the  foreman,  union  workers  are  willing  to  go. 

Or  if  it  becomes  necessary  in  the  judgment  of  the  company  to  transfer  a 
worker  from  a  lower  to  a  higher  paid  section  or  operation,  it  is  agreed  that 
union  workers  shall  have  preference  in  such  transfers.  Provided,  that  nothing 
herein  shall  be  construed  to  be  in  conflict  with  the  provision  relating  to  transfer 
for  discipline,  and  provided  that  they  are  qualified  to  perform  the  work  required 
and  that  their  departure  from  their  section  does  not  work  to  the  disadvantage 
of  that  section. 

Overcrowding  of  Sections.— Ovcrcvowd'mg  of  sections  is  important  in  this 
agreement  as  the  point  at  which  the  provision  for  preference  becomes  operative. 
It  is  agreed  that  when  there  are  too  many  workers  in  a  section  to  permit  of 
reasonably  steady  employment,  a  complaint  may  be  lodged  by  the  union,  and  if 
proved,  the  non-union  members  of  the  section,  or  as  many  of  them  as  may  be 
required  to  give  the  needed  relief,  shall  be  dismissed.  For  the  purpose  of 
judging  the  application  of  preference  the  Trade  Board  shall  take  into  consider- 
ation the  actual  employment  condition  in  the  section,  as  to  whether  there  are 
more  people  employed  at  the  time  of  complaint  than  are  needed  to  do  the  work, 
and  whether  they,  or  any  of  them,  can  be  spared  without  substantial  injury  to 
the  company.  If  it  is  found  that  the  section  can  be  reduced  without  substantial 
injury,  the  Trade  Board  shall  enforce  the  principle  of  preference  as  contemplated 
in  the  agreement. 

199 


Avoidance  of  Injury. — Among  the  things  to  be  considered  in  the  enforce- 
ment of  preference  are  the  needs  of  maintaining  an  adequate  balance  of  sections, 
of  the  requirements  of  the  busy  season,  of  the  difficulty  of  hiring  substitutes, 
and  the  risk  of  impairing  the  efficiency  of  the  organization.  The  claims  for 
enforcement  of  preference  and  for  avoidance  of  injury  to  the  manufacturing 
organization  are  to  be  weighed  by  the  Trade  Board,  and  the  interests  of  both 
claims  safeguarded  as  far  as  possible,  the  intention  being  to  enforce  preference 
so  far  as  it  can  be  done  without  inflicting  substantial  injury  on  the  company. 

Preference  of  Seniority. — If  in  order  to  properly  balance  sections,  a  reduc- 
tion of  force  be  required  greater  than  can  be  secured  by  the  laying  off  of  a 
non-union  worker  as  provided  for  herein,  then  there  may  be  laid  off  those  who 
are  members  of  the  union  in  the  order  of  their  seniority  who  have  been  in  the 
employ  of  the  company  for  a  period  of  six  months  or  less,  provided  that  any 
exceptionally  efficient  worker,  or  any  especially  valuable  member  of  the  union, 
may  be  exempted  from  the  rule  of  seniority.  Provided,  also,  the  company  shall 
give  notice  to  the  chief  deputy  of  its  intention  to  discharge  under  this  clause, 
and  if  he  fails  to  agree  the  matter  shall  be  referred  to  the  Trade  Board. 

Section  V. — Working  Conditions 

Discipline. — The  full  power  of  discharge  and  discipline  remains  with  the 
company  and  its  agents ;  but  it  is  understood  that  this  power  should  be  exercised 
with  justice  and  with  due  regard  to  the  reasonable  rights  of  the  employee,  and, 
if  an  employee  feels  that  he  has  been  unjustly  discharged,  he  may  have  appeal 
to  the  Trade  Board,  which  shall  have  the  power  to  review  the  case. 

Every  person  suspended  shall  receive  a  written  notice,  directing  him  to 
appear  at  the  office  of  the  company  for  a  decision.  Every  suspension  notice 
properly  presented  to  the  discipline  officer  of  the  company  was  be  disposed  of 
within  six  working  hours  from  the  time  of  its  presentation  and  a  definite  decision 
announced  to  the  suspended  person. 

^Stoppages. — In  case  of  a  stoppage  of  work  in  any  shop  or  shops,  a  deputy 
from  each  side  shall  immediately  repair  to  the  shop  or  shops  in  question. 

If  such  stoppage  shall  occur  because  the  person  in  charge  of  the  shop  shall 
have  refused  to  allow  the  people  to  continue  work,  he  shall  be  ordered  to  imme- 
diately give  work  to  the  people,  or  in  case  the  employees  have  stopped  work,  the 
deputies  shall  order  the  people  to  immediately  return  to  work,  and  in  case  they 
fail  to  return  to  work  within  an  hour  from  such  time  such  people  shall  be 
considered  as  having  left  the  employ  of  the  corporation,  and  shall  not  be  entitled 
to  the  benefit  of  these  rules. 

Detention  in  Shop. — Workers  shall  not  be  detained  in  the  shops  when  there 
is  insufficient  work  for  them.  The  company  or  its  agent  shall  exercise  due 
foresight  in  calculating  the  work  available,  and  as  far  as  practicable  shall  call 
only  enough  workers  into  the  factory  to  do  the  work  at  sight.  And  if  a  greater 
number  report  for  work  than  there  is  work  for,  those  in  excess  of  the  number 
required  shall  be  promptly  notified  and  permitted  to  leave  the  shop.  The  work 
on  hand  shall  be  divided  as  equally  as  may  be  between  the  remaining  workers. 

Complaint  Slips. — Before  or  at  the  time  of  entering  any  complaint  against 
any  employee  in  the  complaint  book  said  employee  shall  be  notified  thereof  so 
he  may  have  the  opportunity  of  notifying  a  deputy  of  the  Board  and  have  said 
complaint  investigated. 

200 


^     ■         4 

*  ■ 


Ml     • 


Lay-Offs. — Workers  who  are  dismissed  may  be  given  lay-off  memoranda 
allowing  them  to  return  to  their  shops  or  factories,  trimming  or  cutting  rooms, 
when  there  is  need  for  their  services.  Provided,  this  clause  shall  not  be  con- 
strued to  give  such  worker  precedence  over  union  members,  or  to  interfere  in 
any  way  with  the  provision  for  preference  in  hiring. 

Transfer  of  Employees. — The  company  has  the  right  to  transfer  employees 
for  purposes  of  administration  or  discipline,  subject  to  review  by  the  Trade 
Board.  If  the  Board  finds  that  any  transfer  is  being  made  to  lower  wages,  or 
for  any  discrimination  or  improper  purpose,  or  if  injustice  is  being  done  the 
worker  by  the  transfer,  the  Board  may  adjust  the  complaint. 

Section  VI. — General  Provisions 

Lay  Off  of  Workers. — No  union  member  who  is  a  permanent  worker  shall 
be  laid  off  in  the  tailor  shops  except  for  cause,  whether  in  the  slack  or  busy 
season,  except  as  provided  herein.  Cause  for  temporary  lay  off  may  be  alterna- 
tion of  working  periods  in  slack  times,  reorganization  or  reduction  of  sections, 
lawful  discipline,  and  such  other  causes  as  may  be  provided  for  herein  or 
directed  by  the  Trade  Board. 

Co-operation  to  Abolish  Waiting. — The  company  and  the  deputies  have 
agreed  to  co-operate  to  abolish  all  unnecessary  waiting  in  the  shops. 

Division  of  Work. — During  the  slack  season  the  work  shall  be  divided  as 
near  as  is  practicable  among  all  hands. 

Abandonment  of  Position. — Whenever  any  employee  shall  have  absented 
himself  from  his  accustomed  place  without  giving  an  acceptable  reason  to  the 
foreman  or  other  officers  in  charge  of  his  work  before  the  end  of  the  sr^cond 
business  day  of  his  absence,  the  employer  may  consider  his  position  forfeited. 
Notice  of  absence  and  reason  therefor  must  be  given  to  foreman  by  messenger, 
mail  or  telephone. 

Abolishment  of  Section. — When  sections  are  abolished,  the  company  and 
its  agents  shall  use  every  effort  to  give  the  displaced  workers  employment  as 
much  as  possible  like  the  work  from  which  they  were  displaced,  within  a 
reasonable  time. 

Sickness. — Any  workers  who  are  absent  on  account  of  sickness  shall  be 
reinstated  in  their  former  positions  if  they  return  within  a  reasonable  time. 

Trade  Board  Members. — Complaints  against  members  of  the  Trade  Board 
as  workmen  are  to  be  made  by  the  foremen  to  the  Trade  Board.  Any  action 
of  any  employee  as  a  member  of  the  Trade  Board  shall  not  be  considered 
inimical  to  his  employment  with  the  corporation.  No  member  of  a  Trade  Board 
shall  sit  on  a  case  in  which-he  is  interested,  or  to  which  he  is  a  party. 

Union  Membership.— Tht  provisions  for  preference  made  herein  require 
that  the  door  of  the  union  be  kept  open  for  the  reception  of  non-union  workers. 
Initiation  fee  and  dues  must  be  maintained  at  a  reasonable  rate,  and  any  appli- 
cant must  be  admitted  who  is  not  an  offender  against  the  union  and  who  is 
eligible  for  membership  under  its  rules.  Provided,  that  if  any  rules  be  passed 
that  impose  an  unreasonable  hardship,  or  that  operate  to  bar  desirable  persons, 
the  matter  may  be  brought  before  the  Trade  Board  or  Board  of  Arbitration 
for  such  remedy  as  it  may  deem  advisable. 

The  Old  Agreement. — The  provisions  of  the  old  agreement  and  the  decisions 
based  thereon  shall  be  regarded  as  being  in  force  except  as  they  may  be  modified 
by,  or  are  not  in  conflict  with  the  provisions  of  the  present  agreement. 

201 


Section  VII.— Loyalty  to  the  Agreement 
Experience  suggests  that  there  are  certain  points  of  strain  which  it  would 
be  wise  to  recognize  in  advance  and  to  safeguard  as   far  as  possible.     Among 
the  points  to  be  safeguarded  are  the  following: 

1.  When  dissatisfaction  arises  over  change  of  price  or  working  conditions. 
It  is  believed  that  the  agreement  provides  a  remedy  for  every  such  grievance 
that  can  arise,  and  all  complaints  are  urged  and  expected  to  present  their 
cases  to  the  proper  officials  and  await  an  adjustment.  If  any  one  refuses  to  do 
this,  and,  instead,  takes  the  law  in  his  own  hands  by  inciting  a  stoppage  or 
otherwise  foments  dissatisfaction  or  rebelHon,  he  shall,  if  convicted,  be  adjudged 
guilty  of  disloyalty  to  the  agreement  and  be  subject  to  discipline  by  the  Trade 
Board. 

2.  Strain  may  arise  because  of  unsatisfactory  personal  relations  between 
workers  and  officials.  The  company's  officials  are  subject  to  the  law,  as  are 
the  workers,  and  equally  responsible  for  loyalty  in  word  and  deed,  and  are 
subject  to  discipline  if  found  guilty  of  violation.  Any  complaints  against  them 
must  be  made  and  adjudicated  in  the  regular  manner.  They  are  to  respect  the 
workers  and  be  respected  by  them  in  their  positions,  and  supported  in  the 
proper  discharge  of  their  duties.  Any  one  indulging  in  improper  language  or 
conduct  calculated  to  injure  them  or  to  break  down  their  authority  in  the  shop 
shall  be  adjudged  guilty  of  disloyalty  and  disciplined  accordingly. 

3.  Officials  of  the  union  are  equally  under  the  protection  of  the  agreement 
when  in  the  exercise  of  their  duties  as  are  the  officials  of  the  company,  and 
any  words  or  acts  tending  to  discredit  them  or  the  union  which  they  represent, 
or  which  are  calculated  to  injure  the  influence  or  standing  of  the  union  or  its 
representatives  shall  be  considered  as  disloyalty  to  the  agreement  and  the 
offender  shall  be  subject  to  discipline  by  the  Trade  Board. 

Provided,  however,  that  no  reasonable  criticism  or  expression  of  disagree- 
ment expressed  in  proper  language  shall  be  deemed  a  violation  within  the 
meaning  of  this  section. 

4.  If  any  worker  shall  wilfully  violate  the  spirit  of  the  agreement  by 
intentional  opposition  to  its  fundamental  purposes  and  especially  if  he  carry  such 
wilful  violation  into  action  by  striking  and  inciting  others  to  strike  or  stop  work 
during  working  hours,  he  shall,  if  cliarge  is  proven,  l>e  subject  to  suspension, 
discharge  or  fine.  Pi-ovided,  that  if  a  fine  is  imposed  its  amount  shall  be  deter- 
mined by  the  chairman  of  the  Trade  Board  and  shall  not  be  less  than  $1  or 
more  than  $5  for  each  offense. 

5.  If  any  foreman,  superintendent  or  agent  of  the  company  shall  wilfully 
violate  the  spirit  of  this  agreement  and  especially  if  he  fails  to  observe  and  carry 
out  any  decision  of  the  Trade  Board  or  Board  of  Arbitration,  he  shall,  if  charge 
is  proven,  be  subject  to  a  fine  of  not  less  than  $10  or  more  than  $1  for  each 
offense,  at  the  discretion  of  the  chairman  of  the  Trade  Board. 

Section  VlII 

[Gives  Regulations  Governing  Individual  Departments.] 

Signatures  to  this  Agreement 

for  the  board  of  arbitration 

J.  E.  Williams,  Chairman 

W.  O.  Thompson,  for  the  A.  C.  W.  A.  Carl  Meyer,  for  H.  S.  &  M. 

202 


FOR  THE  TRADE  BOARD 

James  Mullenbach,  Chairman 


*  I      • 


•  ■      » 


\ 


i         • 


•  i  * 


1 


Harry  Hart,  President 
Max  Hart,  Vice-President 
Earl  Dean  Howard  Milton  A 

A.  M.  Levy 


FOR    HART    SCHAFFNER    &    MARX 

Joseph  Schaffner,  Secretary 
Mark  W.  Cresap,  Vice-President 
Strauss  Gilbert  L.  Campbell 

Samuel  Browne 


FOR    THE    AMALGAMATED    CLOTHING    WORKERS    OF    AMERICA 

Sidney  Hillman,  President  A.  D.  Marimpietri,  President  Joint  Board 

Samuel  Levin,  Deputy  Local  39 
Harry  Wolchnovesky,  Vice-President  Local  61 
Morris  Spitzer,  President  Local  144 
Nathan  Garbut,  Recording  Secretary  Local  152 
John  Katilius,  Deputy  Local  26g 
Edward  Anderson,  Deputy  Local  61 
Joseph  Glickman,  Deputy  Local  152 
Vincent  Pachkauskas,  President  Local  26g 
Frank  Rosenbloom  Louis  Taback 

Sam   Rissman  Hyman  Isovitz 

Robert  Cunat  Frank  Petrick 

Sam  Diamond  Joe  Kaminsky 

HICKEY-FREEMAN  COMPANY,  Rochester,  N.  Y. 

"We  have  in  our  organization  a  'Quality  Club,'  which  is  composed  of  heads 
of  departments,  members  of  the  club  by  virtue  of  their  position,  and  elected 
representatives  from  the  employees,  approximately  one  for  every  twenty-five 
people,  divided  up  according  to  operations. 

"This  club  meets  once  a  month  with  a  supper,  for  which  the  firm  pays. 
Reports  are  submitted  by  various  committees  on  matters  relating  to  business, 
such  as  Traffic,  Quality,  Efficiency,  Service  to  Customers,  etc.  Under  the 
Activities  Committee  we  endeavor  to  have  all  the  social  welfare  features. 

"The  elected  members  are  put  on  these  committees  to  give  them  a  chance 
to  become  acquainted  with  conditions  and  to  have  a  voice  in  improving  and 
perfecting  them. 

"The  first  year  of  elected  representatives  they  organized  themselves  into  a 
committee  with  one  of  their  number  selected  as  'spokesman,'  who  was  expected 
to  voice  any  suggestion  that  any  of  the  representatives  might  want  to  make  but 
would  fail  to  because  of  timidity. 

"This  last  year  there  has  been  no  such  regular  organization  of  the  repre- 
sentatives, possibly  because  they  have  been  waiting  for  someone  to  call  them 
together.  There  has  been  an  opportunity  for  them  to  make  suggestions  at 
meetings  and  some  very  good  points  have  been  brought  up.  This  has  not  been 
done  as  freely  as  the  firm  would  welcome  it  nor  have  they  acted  as  reporters 
to  their  elective  sections  as  carefully  as  possible,  but  on  the  whole  the  results 
have  seemed  satisfactory  and  we  anticipate  that  after  the  necessary  time  to  get 
the  thought  in  the  minds  of  the  people  of  what  possibilities  there  are  in  the 
committee  they  will  accept  greater  responsibilities. 

"At  first  this  representation  was  one  for  every  fifty  members  elected  at 
large  from  the  shops.  About  one  year  ago  this  was  changed  to  have  the  repre- 
sentation according  to  the  operations." 

203 


HYDK  AILIC  PRESSED  STEEL  COMPANY,  Cleveland,  Ohio. 

'^Briefly,  the  purpose  of  our  plan  for  shop  committees  is  to  be  sure  of  'tymg 
in'  welfare  and  similar  operations  to  production. 

"To  do  this  we  are  creating  what  we  call  a  small  or  executive  committee 
on  welfare  or  personnel.  This  consists  of  such  officers  as  the  employment 
manager,  the  welfare  manager,  the  director  of  the  restaurant,  the  safety-first 
man.  etc.,  and  then  asking  the  foremen  to  elect  an  equal  number  of  their  own 
group  to  complete  the  committee.  This  group  meets  each  week  to  discuss  ways 
of  joining  up  the  different  activities  so  as  to  bear  directly  on  the  production 
problem,  and  so  gain  a  basis  of  effectiveness  and  permanency.  It  is  expected 
that  one  of  this  committee  will  sit  in  on  the  committee  composed  of  the  factory 
executives  in  constant  touch  with  all  the  operating  activities  of  the  plant. 

"Once  a  month  this  small  committee  then  meets  in  joint  session  with  a 
shop  or  large  committee  on  welfare  or  personnel.  This  second  committee  is 
composed  of  persons  either  elected  directly  by  the  men  in  the  various  depart- 
ments, or,  as  in  our  Canton  Plant,  chosen  by  the  directors  of  the  Relief  Society, 
who  have  in  turn  been  elected  by  the  plant  force.  No  foreman  is  eligible  to 
membership  on  this  large  committee. 

"This  plan  is  in  operation  in  two  of  our  three  plants  and  is  expected  to  be 
in  the  third  shortly.  At  Canton  it  has  produced  such  results  as  modifications  in 
the  system  of  laying  off  which  have  been  greatly  to  the  convenience  of  workers; 
the  extension  of  the  street  railway  line  clear  to  the  plant ;  the  inauguration  of  a 
store  and  lunch  room;  and  the  making  of  almost  numberless  improvements 
which,  in  line  with  the  purpose  of  the  committee,  'represent  the  meeting  point 
of  the  interests  of  the  men  and  the  interests  of  the  company.'  "Sept.  24.  1918. 

IRVING-PITT  MANUFACTURING  COMPANY,  Kansas  City. 

"The  Joint  Shop  Committee  of  the  Irving-Pitt  Manufacturing  Company  is 
known  as  the  Board  of  Appeals.  It  is  made  up  of  two  representatives  from  each 
department,  one  elected  freely  by  the  men,  the  other  chosen  by  the  officials  of 
the  company.  This  committee  is  given  to  understand  by  the  management  that 
they  are  to  act  freely  and  without  prejudice  on  the  part  of  the  company  for  any 
argument  which  may  be  made  by  an  individual  member  of  the  Board  or  for  any 
decision  made  by  the  Board.  Its  function  is  to  decide  any  question  of  con- 
troversy between  the  management  and  any  employee  which  may  develop,  touch- 
ing the  question  of  wages,  hours  and  conditions  of  labor.  The  company  adopts 
the  policy  of  accepting  these  decisions  without  argument  and  makes  no  attempt 
whatever  to  influence  the  decisions  of  the  Board. 

"The  company's  interests  are  represented  on  the  Board  of  Appeals  by  the 
presence  of  the  Superintendent,  Chief  Inspector,  and  Chief  Planner.  These 
three  representatives  constitute  the  executive  force  of  the  factory.  They  are 
present  only  to  supply  the  Board  with  such  information  as  may  be  possessed 
by  the  company  touching  any  question  under  investigation.  They  have  no  right 
to  hold  office  on  the  Board  and  are  advised  not  to  participate  in  arguments. 
The  Board  is  left  free  to  frame  its  own  by-laws  and  elect  its  own  officers. 
There  are  union  and  non-union  men  employed  in  the  factory,  and  union  and 
non-union  members  of  the  Board  of  Appeals. 

"Wages  are  adjusted  by  the  foremen  and  are  only  considered  by  the  Board 
of  Appeals  in  the  event  of  a  disagreement.  Foremen  are  not  represented  on  the 
Board  and  are  not  present  at  its  meetings  unless  called  in  by  the  Board  to 
supply  information.  Employees  unjustly  discharged  may  be  reinstated  by  the 
Board  of  Appeals  over  the  protest  of  the  foreman. 

204 


"The  Board  of  Appeals  has  been  in  existence  about  fifteen  months  with 
complete  satisfaction  on  the  part  of  both  the  company  and  the  employees.  Its 
decisions  are  regarded  by  the  company  as  being  invariably  fair.  The  employees 
have  invariably  accepted  the  decisions  of  the  Board  without  protest.  Since  the 
establishment  of  the  Board  of  Appeals  labor  troubles  have  been  unknown  in  the 
plant.  A  spirit  of  hearty  co-operation  has  been  established  and  is  preserved 
to  the  entire  satisfaction  of  both  the  company  and  its  employees." 

JEFFREY  MANUFACTURING  COMPANY,  Columbus,  Ohio. 

"We  have  had  for  a  great  many  years  a  large  number  of  committees  on 
our  various  shop  activities.  The  committees  have  and  are  taking  part  in  the 
conduct  of  our  rate  work,  tool  design  work,  machine  arrangement,  workmg 
conditions,  mutual  aid,  co-operative  stores.  Building  and  Loan  Association,  bake- 
shop,  restaurant,  employees  paper  and  a  number  of  other  activities.  We  have 
found  that  these  committees  are  really  important  factors  in  harmonizing  the 
work  of  our  institution." 

THE  JOSEPH  &  FEISS  CO.,  Clothcraft  Shops,  Cleveland,  Ohio. 

"We  have  a  shop  advisory  council,  the  representatives  of  which  are  elected 
by  the  different  divisions  in  the  plant.  I  can  say  on  the  whole  that  the  work 
of  the  council  has  resulted  in  an  improvement  of  relationship  between  the 
management  and  the  workers.  This  relationship  has  for  a  long  time  been 
exceptionally  good  in  this  plant  and  there  was  no  demand  for  the  council  or 
any  other  representative  body,  as  there  are  direct  formal  and  informal  methods 
thoroughly  developed  for  the  purpose  of  taking  up  all  possible  matters  between 
management  and  men  and  in  every  way  stimulating  the  mutual  good  relationship. 
No  matter  how  important  a  part  the  management  plays  in  the  scheme  of  things 
of  the  organization,  every  means  of  improving  the  relationship  and  of  making 
permanent  the  relationship  between  the  management  and  men  should  be 
developed. 

"It  was  the  management,  therefore,  that  instituted  the  employees*  council 
and  it  was  some  time  before  any  active  interest  was  shown.  This  interest  today- 
is  probably  much  less  than  where  the  council  is  the  main  means  of  contact  or 
means  of  expression  of  the  workers  to  the  management.  It,  however,  has 
found  a  distinct  place  for  itself  and  to  our  minds  forms  a  safeguard  for  the 
worker,  inasmuch  as  if  the  present  satisfactory  relationship  were  interrupted 
by  any  act  of  the  management,  a  working  council  would  be  the  natural  means 
for  voicing  objections  and  protection  of  interests. 

"It  also  has  helped  the  management  in  getting  across  certain  important 
things  to  the  working  body  which  otherwise  would  probably  not  have  been  so 
thoroughly  understood;  consequently  not  so  unanimously  supported. 

"The  province  of  the  council  is  to  propose  or  review  any  condition  or  act 
of  the  management  that  relates  to  the  general  welfare.  Its  action  is  not  final 
on  most  matters  except  with  the  approval  of  the  management.  The  management 
on  the  other  hand  undertakes  to  establish  nothing  relating  to  the  general  wel- 
fare without  the  approval  of  the  council.  The  council  may  go  into  the  methods 
of  establishing  wages,  but  the  actual  wages  are  not  in  its  sphere,  unless,  on 
the  other  hand,  the  entire  principle  of  our  base  wage  would  come  into  question 
throughout  the  plant." 

Personal  Opinion. — "I  feel  the  above  to  be  the  functions  of  an  employees* 
committee.     I  do  not,  however,  feel  that  an  employees'  committee  can  take  an 

205 


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I 


active  part  in  the  'management'  in  the  sense  that  it  is  often  meant.  I  do  not 
feel  that  it  is  consistent  with  organization  to  have  authority  where  there  is  no 
responsibility.  The  management  in  this  organization,  I  believe,  is  somewhat 
different  than  elsewhere.  A  great  many  of  the  so-called  shop  committees  are 
presumed  to  have  a  certain  amount  of  authority.  Upon  close  scrutiny  it  is 
generally  found  that  this  is  mostly  bunk.  We  have  always  felt  it  important  that 
there  should  be  no  bunk  handed  employees  and  under  no  circumstances  should 
they  be  worked  under  false  pretenses.  Consequently  out  of  a  sense  of  sincerity 
to  each  other  we  have  tried  to  lay  down  pretty  definite  limitations  for  our 
council.  The  council  is,  first  and  foremost,  as  stated  above,  an  additional  means 
of  expression  of  opinion,  suggestion  and  protest,  as  the  occasion  may  be,  from 
the  workers  to  the  management  and  the  management  to  the  workers.  In  this 
way  it  fills  a  place  as  an  educational  purpose  and  has  on  occasion  developed  more 
than  one  worker  who  owes  his  advancement  from  the  ranks  to  the  leadership 
displayed  as  a  council  member. 

In  conclusion  I  would  say  that  I  feel  that  the  council  in  this  plant  is  by  no 
means  developed  to  the  full  extent  of  its  possibilities.  This  is  a  question,  how- 
ever, always,  of  time."— .Ur.  Richard  A.  Feiss,  General  Manager. 

THE  LEEDS  &  NORTHRUP  COMPANY,  Electrical  Measuring  Instru- 
ments, Philadelphia,  Pa. 

"We  have  such  a  committee  which  we  call  the  Leeds  &  Northrup  Co-oper- 
ative Society.  It  is  in  its  functions  modelled  more  nearly  on  that  of  the  Filene 
Company  than  any  other  of  which  I  know.  Its  method  of  election  is  rather 
different  from  any  other  that  I  know.  The  very  rapid  expansion  of  our  business 
due  to  the  war  made  it  apparent  to  us  something  like  a  year  ago  that  the  old 
spirit  of  mutual  understanding  and  co-operation  between  the  management  and 
the  employees  was  largely  disappearing.  Due  to  the  large  number  of  new 
employees,  we  felt  that  it  would  be  very  desirable  to  organize  the  older  em- 
ployees and  work  out  some 'plan  by  which  they  could  be  more  effective  in  co- 
operating with  the  management  and  making  the  old  spirit,  the  passing  of  which 
they  as  well  as  the  management  regretted,  permeate  the  mass  of  new  employees. 

"In  order  that  our  shop  committee  might  really  be  representative,  we  dis- 
cussed the  matter  first  with  a  group  of  alwut  fifteen  foremen,  etc.,  and  then 
called  together  a  group  of  about  sixty  of  our  employees  who  had  been  with  us 
four  years  or  more  continuously.  Plans  for  such  an  organization  were  dis- 
cussed through  two  or  three  meetings,  committees  on  election,  constitution,  etc., 
were  appointed  and  resulted  in  the  formation  of  the  Society.  The  business  is 
divided  into  seven  sections,  each  one  of  which  has  one  or  more  representatives 
in  the  council,  according  to  the  number  of  employees  in  it:  one  to  fifty-nine 
employees,  one  representative;  sixty  to  ninety  employees,  two  representatives; 
ninety  to  one  hundred  and  thirty-nine  employees,  three  representatives.  In 
addition  there  is  one  representative  at  large  for  each  seventy-five  employees. 

"We  have  at  the  present  time  some  four  hundred  and  thirty  employees,  and 
there  are  fifteen  councillors. 

"This  plan  has  been  in  existence  a  short  time  only,  the  preliminary  meetings 
being  held  in  May  of  this  year.  All  questions  that  might  be  occasions  of  dis- 
pute between  the  management  and  the  employees  that  have  come  up  since  have 
been  submitted  to  the  council  and  settled  satisfactorily.  They  were  not  serious 
questions,  however. 

"We  believe  that  the  council  is  in  good  measure  fulfilling  the  objects  of 
its  appointment,  and  that  it  will  occupy  a  more  and  more  important  place  in  our 

206 


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«■      k 


organization.  It  is  anticipated  that  it  will  take  up  quite  a  range  of  problems 
connected  with  employees'  interests  and  activities,  in  addition  to  those  which 
have  to  do  with  the  relationship  between  the  employees  and  the  management." 

Personal  Opinion. — "I  am  personally  a  thorough  believer  in  such  committees, 
but  I  think  it  will  be  very  easy  to  make  the  mistake  of  expecting  too  much  of 
them.  It  is  not  reasonable  to  suppose  that  a  group  of  people,  elected  to  a  com- 
mittee, often  chiefly  because  of  their  popularity,  will  have  the  wisdom  and 
experience  to  settle  wisely  the  many  troublesome  problems  that  will  naturally 
come  before  them.  It  is  probable  that  both  time  and  patience  will  be  necessary 
before  such  committees  reach  anything  like  their  maximum  of  effectiveness. 
On  the  other  hand,  there  seem  to  be  immediate  advantages  in  the  spirit  of  co- 
operation which  the  formation  of  the  committee  very  much  enhances,  and,  in 
addition,  men  and  women  develop  in  the  committee  unexpected  capabilities  for 
leadership,  etc."— Letter  from  Mr.  Leeds,  October  10,  1918. 

MIDVALE    STEEL    AND    ORDNANCE    COMPANY,    CAMBRIA    STEEL 
COMPANY  AND  SUBSIDIARY  COMPANIES 

PLAN    OF   REPRESENTATION   OF   EMPLOYEES 

Effective  October  1,  1918. 
History 

For  some  time  past,  the  officers  of  these  companies  have  had  under  con- 
sideration, the  establishing  of  some  method  which  would  provide  a  practicable 
means  of  communication  and  conference  with  the  emplo>ees  collectively. 

At  a  meeting  of  the  Board  of  Directors,  held  September  19,  1918,  it  was 
decided  to  take  immediate  action,  and  the  president  was  authorized  to  post  a 
notice  at  the  Johnstown,  Coatesville  and  Nicetown  Works,  reading  as  follows: 

"The  Board  of  Directors  and  Officers  of  Midvale  Steel  and  Ordnance 
Company,  Cambria  Steel  Company  and  Subsidiary  Companies,  recognizing  the 
fact  that  the  prosperity  of  their  companies  is  inseparably  bound  up  with  the 
general  welfare  of  their  employees,  propose,  with  the  co-operation  and  assent 
of  their  employees,  and  for  their  mutual  interests,  to  establish  a  plan  for  repre- 
sentation of  employees,  which  will  hereafter  govern  all  relations  between  the 
companies  and  their  employees. 

"The  past  history  of  these  companies  has  been  remarkably  free  from  serious 
disputes  with  their  wage-earners,  due,  it  is  sincerely  believed,  to  the  fair  dealing 
which  it  has  always  been  the  aim  of  the  management  to  maintain  in  all  matters 
affecting  the  relation  of  the  companies  to  their  employees. 

"We  recognize  the  right  of  wage-earners  to  bargain  collectively  with  their 
employers,  and  we  hereby  invite  all  employees  to  meet  with  the  officers  of  their 
respective  companies  for  the  purpose  of  considering,  and  if  practicable,  adopting, 
a  plan  of  representation  by  the  employees,  which  shall  be  thoroughly  democratic 
and  entirely  free  from  interference  by  the  companies,  or  any  official  or  agent 
thereof. 

"It  is  hoped  that  every  employee  will  respond  to  this  invitation,  and  meet 
with  the  officers  of  the  company  in  the  spirit  of  fair  dealing  and  mutual 
helpfulness. 

"For  the  mutual  convenience  of  officers  and  employees,  these  meetings  are 
called  as  per  schedule  attached  hereto." — A.  C.  Dinkey,  President. 

This  notice  was  posted,  and  in  accordance  with  its  terms,  the  employees  met 
for  convenience  in  their  various  departments  and  elected  the  following 
representatives : 

(Here  follows  a  list  of  over  100  delegates.) 

207 


The  above  mentioned  representatives,  in  turn,  elected  from  among  their 
number  the  following  committee  to  come  to  Philadelphia  to  confer  with  the 
officers  of  the  company: 


From  Johnstown: 

NAME 

Koontz,  John  E. 
Bingham,  Robert 
Rhode,  Henry 
Edwards,  E.  W. 
Woy,  Edward  E. 

From  Nicetown: 

Boyne,  Raymond 
Martin,  George 
Souders,  Clifford  S. 
Cooke,  Thomas 
Faas,  Francis  X. 

From  Coatesville: 

George,  Frederick  S. 

Lillico,  Geo.  E. 

Rhoades,  W.  H. 


POSITION 

Roll  Turner 
Roller — 24"  Gautier 
Brick  Mason  Foreman 
Structural  and  Steel  Car  Dept. 
Transportation  Department 


Crane  Operator 
Mechanical  Department 
Foreman  No.  4,  Machine  Shop 
Open  Hearth  Foreman 
Foreman,  Chipping  Department 


Foreman  and  Screwman 

Plate  Mill  Department,  V.  W. 

Pit  Foreman — No.  2,  Open  Hearth  De- 
partment, Brandywine  Works. 

Foreman  No.  3,  Plate  Mill,  Brandy- 
wine  Works. 


The  above  committee  met  with  Wm.  B.  Dickson,  vice-president;  E.  E.  Slick, 
vice-president;  John  C.  Ogden,  general  superintendent,  Johnstown  Works;  H.  D. 
Booth,  general  superintendent,  Nicetown  Works ;  H.  A.  Whitaker,  general  super- 
intendent, Coatesville  Works;  in  the  Widener  Building,  Philadelphia,  and  con- 
tinued in  conference  Wednesday  and  Thursday,  September  25  and  26,  1918. 

For  the  purpose  of  facilitating  the  work  of  the  conference,  Mr.  Dickson 
presented  for  the  consideration  of  the  employees'  representatives,  a  tentative 
draft  of  a  proposed  plan  for  the  purpose  of  establishing  a  representative  sys- 
tem, which  will  provide  a  regular  means  of  communication  and  conference 
between  the  officials  and  the  employees  of  these  companies  * 

"This  draft  was  submitted,  item  by  item,  to  the  votes  of  the  employees* 
representatives,  and,  as  finally  amended  by  them,  on  motion  duly  made  and 
seconded,  was  adopted.  .  .  ." 

The  plan  as  approved  by  the  above  committee,  was  ratified  by  the  plant 
representatives.  .  .  . 

Midvale  Steel  and  Ordnance  Company;  Cambria  Steel  Company. — In  order 
to  establish  a  representative  system  which  will  provide  a  regular  means  of 
communication  and  conference  between  the  officials  and  the  employees  of  these 
companies,  the  following  plan  is  hereby  adopted : 

•  In  presenting  this  tentative  draft,  Mr.  Dickson  made  it  plain  to  the  representatives  that 
this  was  done  not  with  any  purpose  of  unduly  influencing  their  action,  but  only  to  give  some 
basis  on  which  to  proceed  with  the  work  in  hand.  As  a  matter  of  fact,  the  draft  was 
amended    in    several   important    respects   before   final    adoption. 

208 


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i    4t 


•  • 


«  t 


Part  I.— Plan  of  Representation  of  Employees 

(1)  For  the  convenient  administration  of  this  plan,  each  plant  shall  be 
divided  into  as  many  divisions  as  may  be  decided  upon  by  the  division  repre- 
sentatives of  each  plant,  on  the  basis  of  one  (1)  representative  for  each  three 
hundred  (300)  men.  H  any  division  shall  have  one  hundred  and  fifty  (150) 
men  in  excess  of  three  hundred  (300)  (or  multiple  of  three  hundred)  it  shall 
be  entitled  to  a  representative  for  such  fraction.  In  case  the  fraction  is  less 
than  one  hundred  and  fifty  (150),  it  shall  not  be  counted  unless  merged  with 
a  similar  fraction  from  another  division. 

The  above  representation  shall  be  based  on  the  average  number  of  em- 
ployees of  each  division,  as  shown  on  the  books  of  the  company  for  the  three 
months,  October,  November  and  December,  preceding  the  election. 

For  the  purpose  of  determining  the  proper  representation  of  each  division, 
the  Plant  Conference  Committee  hereinafter  constituted,  shall  have  access  to 
the  records  of  the  Time  Offices  of  the  plant. 

(2)  Annual  Election  of  Employees'  Representatives.— Employees  in  each 
division  shall  elect  annually  from  among  their  number,  representatives  as  set 
forth  in  Clause  1  to  act  on  their  behalf  in  all  matters  pertaining  to  conditions 
of  employment,  the  adjustment  of  differences,  and  all  other  matters  affecting 
the  relation  of  the  employees  to  the  company. 

(3)  Annual  Election  of  Representatives.— The  annual  election  of  representa- 
tives shall  be  held  on  the  second  Monday  of  January  of  each  year,  and  the 
nomination  of  representatives  shall  be  held  at  least  two  (2)  days  preceding 
the  election.  The  meetings  for  the  nomination  and  election  shall  be  called  by 
direction  of  the  Plant  Conference  Committee  hereinafter  constituted.  Notices 
of  the  nomination  and  election,  indicating  the  number  of  representatives  to  be 
elected  in  each  division,  shall  be  publicly  posted  in  each  subdivision  of  the  works 
a  week  in  advance  of  such  meetings,  and  shall  state  that  all  employees  are 
entitled  to  vote,  with  the  exception  of  salaried  foremen  and  superintendents. 
Special  elections  shall  be  similarly  called,  when  for  any  reason  a  vacancy  occurs 
in  the  representation  of  any  division. 

(4)  Nomination  and  Election  of  Representatives. — To  insure  absolute  free- 
dom of  choice,  both  nomination  and  election  shall  be  by  secret  ballot,  under 
conditions  insuring  an  impartial  count.  The  company  shall,  if  requested,  pro- 
vide ballot  boxes.  It  shall  also,  if  requested,  provide  blank  ballots  for  purposes 
of  nomination,  and  also  ballots,  differing  in  form  or  color,  for  purposes  of 
election.  Each  employee  entitled  to  vote,  shall  be  given  a  nomination  blank  by 
the  election  officers,  on  which  he  shall  write  the  names  of  the  fellow  employees 
in  his  division  whom  he  desires  to  nominate  as  representatives,  and  will  himself 
deposit  the  nomination  blank  in  the  ballot  box.  Each  employee  may  nominate 
representatives  to  the  number  to  which  the  division  is  entitled,  in  accordance 
with  public  notice.  Employees  unable  to  write,  may  ask  any  of  their  fellow 
employees  to  write  for  them  on  their  ballots,  names  of  the  persons  whom  they 
desire  to  nominate. 

In  the  event  of  any  nomination  paper  containing  more  than  the  number  of 
representatives  to  which  the  division  is  entitled,  the  ballot  shall  be  void.  Persons 
to  the  number  of  twice  as  many  representatives  as  the  division  is  entitled  to 
receiving  the  highest  number  of  nomination  votes,  shall  be  regarded  as  the  duly 
nominated  candidates  for  employees'  representatives,  and  shall  be  voted  upon 
as  hereinafter  provided.     For  example,  if  the   division  is   entitled  to   two    (2) 

209 


representatives,  the  four  (4)  persons  receiving  the  largest  number  of  nomi- 
nation votes  shall  be  regarded  as  the  duly  nominated  candidates.  If  the 
division  is  entitled  to  three  (3)  representatives,  then  the  six  (6)  persons  receiv- 
ing the  largest  number,  etc. 

(5)  XiUHiuatioH  and  Election  of  Refyrcscntatii'cs. — For  the  purpose  of  in- 
augurating this  plan,  the  division  representatives  elected  at  the  various  plants 
on  IVIonday,  September  23,  1918,  shall  liold  office  until  their  successors  are 
elected  on  the  second  Monday  of  January,  1919.  All  nominations  and  elections 
thereafter  shall  be  under  the  supervision  of  an  Election  Committee  of  three  (3) 
for  each  division,  to  be  selected  by  the  Plant  Conference  Committee  herein- 
after constituted. 

The  Election  Committee  shall  count  the  nominating  ballots,  make  a  list 
showing  the  number  of  votes  cast  for  each  person,  and  post  notices,  signed  by 
each  member  of  the  Committee,  at  suitable  places  in  the  division,  giving  the 
number  of  votes  cast  for  each  person  and  announcing  the  names  of  the  nominees, 
as  provided  in  Clause  Four  (4),  These  notices  shall  be  posted  at  least  forty- 
eight  (48)  hours  in  advance  of  the  election.  On  the  date  designated,  the 
election  of  representatives  shall  be  held  by  secret  ballot,  from  among  the  num- 
ber of  candidates  nominated. 

The  election  ballots  shall  be  counted  by  the  Division  Election  Committee, 
and  lists  in  triplicate  showing  the  number  of  votes  cast  for  each  person  shall 
be  prepared  by  the  Division  Election  Committee  and  signed  by  each  member 
thereof,  one  of  which  lists  shall  be  posted  is  a  conspicuous  place  in  the  division, 
one  forwarded  to  the  General  Superintendent  as  evidence  that  the  persons 
elected  are  duly  accredited,  and  one  list  retained  by  the  committee.  The  persons 
showing  by  such  certified  lists  to  have  been  elected  as  provided  in  Clause  Four 
(4),  shall  be  the  representatives  of  the  division  for  the  ensuing  year,  or  until 
their  successors  are  elected. 

(6)  The  Division  Election  Committee  shall  seal  and  hold  in  safe  custody 
for  a  period  of  ten  days,  the  ballot  boxes  containing  both  the  nomination  and 
the  election  ballots.  In  case  of  an  appeal  signed  by  not  less  than  two-thirds  of 
the  voters  of  any  division,  within  this  ten-day  period,  questioning  the  validity 
of  the  count,  the  Division  Election  Committee  shall  deliver  the  sealed  ballot 
boxes  to  the  Plant  Conference  Committee,  hreinafter  constituted.  This  Com- 
mittee shall  count  and  certify  by  signed  lists  in  the  same  manner  as  provided 
in  Clause  Five  (5),  and  there  shall  be  no  further  appeal  from  their  decision. 
If,  in  the  judgment  of  the  Plant  Conference  Committee,  the  irregularities  are 
such  as  to  demand  a  new  election,  they  are  authorized  to  arrange  for  such 
election. 

(7)  As  a  certain  interval  of  time  is  required  to  enable  a  man  to  become 
acquainted  with  the  conditions  surrounding  the  work  in  any  department,  so 
that  he  can  intelligently  represent  his  fellow  workmen,  all  persons  elected  as 
Division  Representatives  shall  have  been  in  the  employment  of  the  company 
for  at  least  one  year  in  the  aggregate;  provided,  however,  that  the  Division 
Representatives  of  each  plant,  if  they  so  elect,  may  provide  for  a  longer  term 
of  service  in  order  to  quahfy  a  man  for  the  position  of  representative. 

(8)  In  case  a  petition  is  signed  by  not  less  than  two-thirds  of  the  employees 
of  any  division,  stating  that  any  elected  representative  of  that  division  has 
ceased  to  be  satisfactory  to  them,  a  re-election  for  the  position  occupied  by 
such  representative,  shall  be  held  similar  to  that  which  would  be  held  in  the 
case  of  a  vacancy. 

210 


r" 


9 


(9)  When  any  elected  representative  ceases  to  be  an  employee  of  the  com- 
pany, his  position  as  representative  shall  become  vacant,  and  his  successor  shall 
be  elected  as  provided  in  Part  I,  Clause  Three   (3). 

Part  II — Administration 

(1)  Within  a  week  from  the  date  on  which  the  Division  Election  Com- 
mittee announce  the  names  of  the  elected  Division  Representatives,  all  of  these 
representatives  shall  meet  and  elect  from  among  their  number,  a  Plant  Con- 
ference Committee,  consisting  of  one  representative  for  each  three  thousand 
(3,000)  employees  at  the  plant ;  with  the  proviso  that,  if,  at  any  plant,  the  num- 
ber of  employees  in  excess  of  three  thousand  (3,000)  (or  any  multiple  thereof), 
is  fifteen  hundred  (1,500),  there  shall  be  a  representative  elected  for  this  frac- 
tion; and  if  the  fraction  is  less  than  fifteen  hundred  (1,500),  it  shall  not  be 
counted ;  with  the  further  proviso,  that  no  two  members  of  the  Plant  Conference 
Committee  shall  be  selected  from  the  same  department  of  the  plant. 

(2)  Any  employee  having  any  grievance,  or  any  matter  on  which  he  desires 
to  have  a  decision,  shall  first  present  the  subject  to  his  immediate  foreman  or 
superintendent,  in  person  or  through  his  Division  Representatives.  If  unable 
to  secure  a  satisfactory  adjustment,  the  aggrieved  person,  through  his  Division 
Representatives,  shall  present  the  matter  in  writing  for  consideration  to  the 
Plant  Conference  Committee  mentioned  in  Clause  One  (1).  If,  in  the  judg- 
ment of  this  Committee,  the  grievance  is  a  just  one,  they  shall  present  the  matter 
in  writing  to  the  General  Superintendent  of  the  works,  who  shall  then  confer 
with  the  Plant  Conference  Committee,  with  the  view  of  reaching  a  satisfactory 
settlement.  The  General  Superintendent  shall  have  the  privilege,  if  he  so 
desires,  of  calling  into  this  conference,  all  of  the  Division  Representatives. 

(3)  If  the  General  Superintendent  or  his  representative,  and  a  majority  of 
the  Plant  Conference  Committee  (or  a  majority  of  the  Division  Representatives 
in  case  they  are  called  into  the  conference),  are  unable  to  agree  upon  any 
question  at  issue,  the  matter  shall  be  referred  to  a  committee  consisting  of  the 
General  Superintendents  of  all  of  the  plants  of  the  company  and  all  of  the 
members  of  the  Plant  Conference  Committees  of  all  plants  of  the  company. 
This  combination  of  Plant  Conference  Committees  together  with  the  General 
Superintendents  shall  be  known  as  the  General  Committee.  On  all  propositions 
submitted  to  a  vote  by  the  General  Committee,  the  General  Superintendents  shall 
jointly  cast  one  vote  for  the  company  and  the  representatives  of  the  employees 
shall  jointly  cast  one  vote  for  the  employees.  The  president  and  other  executive 
officers  of  the  company  shall  have  the  privilege  of  appearing  before  the  General 
Committee.  If  this  committee  is  unable  to  reach  an  agreement,  the  matter 
shall  be  referred  to  arbitration. 

(4)  One  person  shall  be  elected  as  arbitrator  if  the  parties  can  agree  upon 
his  election;  otherwise,  there  shall  be  a  board  of  three  arbitrators,  one  member 
to  be  selected  by  the  president  of  the  company  or  his  representative,  one  mem- 
ber to  be  selected  by  the  employee  members  of  the  General  Committee;  these 
two  members,  if  unable  to  agree,  to  select  a  third  arbitrator.  The  decision  of 
the  arbitrator  or  arbitrators  in  any  matter  submitted  to  him  or  them,  shall  be 
final  and  binding  upon  both  the  company  and  the  employees. 

Part  III — Rules  Governing  the  Employment  and  Discharge  of  Workmen 

(1)  The  right  of  the  company  to  hire  and  suspend  or  discharge  men  shall 
not  be  limited,  except  as  expressly  provided  herein. 

211 


(2)  Any  employee,  guilty  of  any  of  the   following  offenses,  shall  be   sub- 
ject to  immediate  discharge  without  notice: 

(a)  Disloyalty  to  the  United  States  Government  by  act,  or  utterance. 

(b)  Any  offense  against  the  criminal  law  of  the  State. 

(c)  Assault  upon,  or  attempt  to  injure,  another  person. 

(d)  Wanton  destruction  of  property. 

(e)  Refusal  to  obey  a  reasonable  order  of  his  superior  officer. 
(/)  Intoxication  while  on  duty. 

(3)  For  offenses  of  a  less  serious  character,  such  as : 
Carelessness, 

Failure  to  report  for  duty  regularly  and  at  the  proper  time, 
Inefficiency,  etc., 

It  shall  be  the  duty  of  the  officers  to  secure  efficiency  by  giving  the  offender 
at  least  one  caution,  which,  if  not  heeded,  may  be  followed  by  dismissal  without 
further  notice. 

(4)  Any  employee  discharged  for  cause,  may  demand  that  such  cause  be 
clearly  stated  to  him,  and  shall  have  the  right  of  appeal  to  the  General  Superin- 
tendent, either  in  person  or  through  his  elected,  representative. 

Part  IV— General 

(1)  No  employee  shall  be  compelled  to  purchase  any  articles,  or  service, 
from  the  company  nor  to  subscribe  to  any  fund,  except  such  beneficial  asso- 
ciations as  are  already  established  or  may  hereafter,  with  the  consent  of  the 
employees,  be  created.  This  shall  not  affect  the  duty  of  the  employees  to  account 
for  tools  or  other  supplies  owned  by  the  company  and  entrusted  to  their  care. 

(2)  Nothing  in  the  foregoing  shall  prohibit  the  company  from  giving 
employees  an  opportunity  to  subscribe  for  the  stock  of  the  company,  Liberty 
Loans,  Thrift  Stamps,  etc.,  providing  all  such  subscriptions  are  entirely  volun- 
tary on  the  part  of  the  employed. 

(3)  Nothing  herein  shall  affect  the  right  of  the  company  to  suspend  work  in 
any  department  because  of  lack  of  orders  or  for  any  other  legitimate  business 
reason.  This  may  be  'done  without  notice,  but  it  shall  be  the  duty  of  the 
officers  to  give  as  much  advance  notice  as  practicable. 

(4)  If  any  elected  representative  is  appointed  as  a  salaried  foreman  or 
superintendent,  his  position  as  representative  shall  thereby  become  vacant,  and 
his  successor  shall  be  elected  as  provided  in  Part  I,  Clause  Three  (3). 

Once  every  three  months,  at  times  and  places  mutually  agreed  upon  by 
the  president  of  the  company  and  the  Conference  Committee  of  the  plants, 
there  shall  be  a  combined  meeting  of  all  elected  representatives  with  the  officials 
of  the  company  for  the  purpose  of  discussing  all  matters  of  general  interest  to 
both  parties. 

MOBILE  SHIPBUILDING  COMPANY,  Mobile,  Ala. 

Undoubtedly,  the  big  problem  confronting  us  all  is  Labor.  In  our  yard  we 
have  adopted  the  method  of  handling  labor  as  outlined  by  the  Shipbuilding 
Labor  Adjustment  Board  in  their  award  of  April  for  this  district,  but  we  have 
elaborated  somewhat  upon  it,  and,  as  a  result,  our  yard  has  been  entirely  free 
from  labor  troubles. 

212 


f^ 


it  was  a  rather  difficult  matter  to  get  the  system  worked  out  at  firs  but 
now  that  it  is  working  smoothly,  the  writer  assures  you  that  U  has  proven  .ts 
worth.     We  handle  our  labor  situation  in  the  followmg  manner : 

I.    Craft  Committees— Direct  Labor 

Craft  Co,,uninc.s.-Wc  employ  at  present  eleven  different  crafts  on  direct 
labor.  Each  of  these  crafts  held  a  mass  meeting  early  last  May  and  elected 
three  members  to  represent  their  craft,  as  a  craft  or  shop  ^or.r.ai.e  V^. 
selected  our  Employment  Manager.  Mr.  J.  E.  Taylor,  to  act  as  our  d.rect  repre- 
sentative  with  the  craft  committees. 

The  committees  selected  by  the  employees  to  represent  the  respective  crafts 
were  required  to  officially  notify  our  Employment  Manager  that  they  were 
duly  elected  by  the  maiority  of  the  employees  of  the  yard,  who  -re  memb  rs 
of  Lt  particular  craft.  Copies  of  these  official  notices  were  rnade  and  posted 
on  various  bulletin  boards  throughout  the  yard,  addressed  to  the  employees  o 
the  yard,  requesting  them  to  notify  us  of  any  irregularity  m  the  election  .f 
so  suggested,  and  if  not,  the  shop  committee  so  posted  would  be  recognized  as 
the  official  craft  committee. 

"Joiut"  Shop  Commi««.*-The  chairmen  of  the  eleven  craft  committees 
constitute  the  Joint  Shop  Committee.  The  Joint  Shop  Committee  then  selected 
from  their  number  a  chairman  and  officially  notified  our  Employment  Manager 

of  the  selection  and  he  in  turn  acknowledged  ^^"f  °\'''.%"°-"°"  ^"ftee" 
this  manner  we  arrived  at  a  formal  organization  of  the  Joint  Shop  Committee, 
which  governs  the  labor  problems  of  our  yard. 

Committee  Room.-VJe  built  an  addition  to  our  Employment  Office,  which 
■s  known  as  the  Joint  and  Craft  Committee  Room  This  f-" '%P;;Pf,^/";; 
nished  to  accommodate  fifteen  people  and  is  equipped  with  standard  fies  for 
each  craft  committee  and  one  file  for  the  Joint  Shop  Committee.  At  its  firs 
session  the  Joint  Committee  unanimously  elected  our  employment  manager  s 
stenographer  as  secretary  of  the  Joint  Shop  Committee. 

The  grievances  of  the  Craft  Shop  Committees,  when  we  first  started  this 
program,  were  numerous,  but  were  usually  settled  by  the  foremen  or  super- 
fntenden  in  charge  of  the  particular  craft.  It  has  developed  now  to  the  point 
where  we  very  seldom  have  a  direct  grievance  from  the  craft  committee,  as 
practically  all  of  the  problems  are  handled  by  the  Joint  Committee 

Our  Joint  Committee  has  a  regular  meeting  every  Tuesday  at  1.00  P    M 
and  the  session  convenes  until  all  matters  requiring  attention  are  set  led     It  . 
not  unusual  to  have  the  session  of  the  Joint  Committee  adjourn  within  an  hour 
after  it  convenes,  where  the  Joint  Committee  was  formerly  m  session  from  one 
haff  to  one  and  one-half  days.    The  minutes  of  the  Joint  Committee  are  taken 
by   a   stenographer,   transcribed   and   officially    approved   by   the   chairman    and 
secretary  of  the  committee.    Copies  of  these  minutes  are  given  to  chairmen  o 
the  various  craft  committees  representing  the   crafts   and   to   our  employment 
manager,  general  superintendent,  and  to  the  writer. 

The  Joint  Committee  convenes  weekly  whether  or  not  they  have  any  cases 
to  consider,  and  at  that  regular  meeting,  aside  from  our  employment  manager 
our  general  superintendent  makes  it  a  point  to  be  present  and  very  often  the 
writer  is  also  invited  to  attend. 

•  Note:-"Joint"    in   th«    it   includes   all    crafts.      Does    not    include    representations    of 
management. 

213 


When  a  grievance  by  our  Craft  Committee  is  submitted  to  the  superin- 
tendent and  denied  by  him,  the  Craft  Committee,  of  course,  has  the  right  to 
appeal  to  the  Joint  Shop  Committee  and  it  is  not  at  all  unusual  to  find  the  Joint 
Committee  over-ruling  the  Craft  Committee  and  sustaining  the  management. 

Our  Employment  Manager  and  our  Joint  Shop  Committee  have  recently 
organized  the  Moshico  War  Savings  Committee.  Last  week  our  total  pay  roll 
was  $35,000  for  direct  labor  and  the  sale  of  War  Stamps  was  nearly  $3,700. 

In  the  election  of  candidates  for  the  Training  Center,  operated  under  the 
Industrial  Service  Section',  we  permitted  the  committeemen  of  the  Joint  Com- 
mittee to  offer  suggestions  as  to  the  candidates  from  the  various  crafts  that 
should  be  given  an  opportunity  to  be  in  the  Training  Center.  Please  do  not 
understand  that  we  allowed  the  Joint  Shop  Committee  to  make  the  selections 
for  the  Training  School,  but  we  simply  acted  on  their  suggestions,  if  the  merits 
of  the  candidates  warranted  it. 

The  above  in  a  general  way  presents  the  manner  in  which  we  handle  our 
labor  situation  so  far  as  it  affects  direct  labor. 

II.    Outside  Department — Indirect  Labor 

Foremen's  Association. — We  have  formed  what  is  known  as  the  Moshico 
Foremen's  Association  and,  as  its  name  signifies,  represents  all  foremen  employed 
by  our  company.  To  become  eligible  for  membership  in  this  association,  candi- 
dates must  be  classified  on  our  books  as  foremen  or  leading  men  in  the  yard. 
The  By-Laws  Committee  have  ruled  that  our  General  Superintendent  and  all 
assistant  superintendents  and  foremen  below  him  are  eligible  for  active  mem- 
bership. The  same  committee  have  ruled  that  all  the  officials  of  the  company, 
from  the  President  to  the  General  Superintendent,  are  eligible  for  honorary 
membership.  The  Moshico  Foremen's  Association  have  at  present  sixty-three 
(63)  members.  A  bi-weekly  dinner  is  given  every  other  Monday  night.  The 
business  sessions  convene  immediately  after  the  dinner  and  last  for  two  or 
three  hours.  Foremen's  meetings  are  also  held  in  the  yard  at  least  twice  a 
week,  where  views  are  exchanged.  We  find  that  the  bi-weekly  dinner  is  a  great 
factor  in  promoting  harmony  and  good  feeling  among  the  various  foremen. — 
Letter  from  Mr.  Frank  McLaughlin,  General  Manager. 

THE  NORTHFIELD  COMPANY,  Sheboygan,  Wis. 

"In  our  shop  we  have  a  committee  who  look  after  safety  devices  and  health 
conditions  only,  and  the  results  have  been  very  satisfactory. 

"The  wage  question  so  far  has  not  been  taken  up  by  any  committee  except 
where  it  refers  to  the  dividends  which  we  pay  to  our  men.  We  installed  a 
dividend  plan  two  years  ago  which  entitles  each  employee  who  has  been  with 
us  six  months  or  longer  to  a  percentage  on  their  year's  wages,  depending  on 
the  length  of  service,  which  we  pay  to  them  in  twelve  monthly  installments ;  the 
total  amount  to  be  distributed  has  so  far  been  decided  by  the  management,  but 
the  percentage  paid  to  the  different  individuals  is  passed  on  by  this  committee. 

"We  favor  the  co-operative  plan  between  employer  and  employees  and  we 
try  to  carry  it  out  as  far  as  possible  under  existing  conditions.  We  employ 
jnly  140  men  and  the  writer  is  personally  acquainted  with  every  employee  in 
our  service,  which  gives  him  a  great  deal  of  information  regarding  conditions." 

^  Of   the   Industrial    Relations    Division,    Emergency    Fleet   Corporation. 

214 


I 


•        • 


THE  PACKARD  PIANO  COMPANY,  Fort  Wayne,  Ind. 

••We  adopted  this  policy  (an  'Industrial  Democracy'  plan)  in  the  fall  of 
1913,  with  the  result  that  today  we  are  doing  more  w-ork  and  better  work  on 
an  eight-hour  schedule  with  100  less  men  than  we  f^^efore  the  mstal  a  ion  o^ 
this  policy  on  a  ten-hour  schedule.  Former  force  2/0,  now  1/0.  -Letter  from 
Mr   A    S.  Bond,  President,  September  13,  1918. 

•The  principles  embodied  in  the  policy  which  forms  the  foundation  of  this 
system  are  fundamental  in  business  of  all  kinds  and  especially  is  this  true  m 
the  relation  of  the  employer  and  employee.  This  being  true  it  ^^"^-^^^^^>;  ° 
evolve  ways  and  means  to  keep  them  constantly  before  the  minds  of  both 
emplover  and  employee,  making  them  a  living  power  in  the  lives  of  both. 

•'We  have  been  working  under  this  policy  now  for  five  years  and  would 
not  know  how  to  get  along  without  it.  We  consider  it  the  most  valuable  thing 
we  have  and  while  it  may  seem  visionary,  we  look  upon  it  from  an  actual  try- 
out  of  five  years,  as  not  only  practical,  but  of  all  things  we  know  o  ,  properly 
handled,  it  is  the  most  practical  way  of  conducting  business  and  handling  men. 
—Letter  of  October  26,  1918. 

The  svstem  installed  by  this  company  is  similar  to  that  in  operation  in  the 
factory  of  William  Demuth  &  Co.,  Rictimond  Hill,  New  York. 

PENBERTHY  INJECTOR  COMPANY,  Detroit,  Mich. 

"We  have  never  had  any  plan  in  operation  which  gave  the  employees  or 
representatives  of  the  employees  a  vote  or  say  as  to  the  policies  of  this  company 
in  relation  to  the  shop.  Any  wage  differences  or  other  grievances  are  usually 
settled  by  the  foreman,  and  if  he  is  not  able  to  effect  a  satisfactory  settlement, 
the  dispute  is  carried  to  the  superintendent  and  decided  by  him. 

-We  do  however,  have  monthly  meetings,  attended  by  the  various  foremen. 
the  superintendent  and  other  executives  of  the  company.  We  have  also  made 
it  a  practice  to  invite  three  or  four  employees  to  attend. 

*•  \t  these  meetings  criticisms  and  suggestions  relating  to  our  shop  practices 
and  policies  are  invited,  and  if  the  criticism  is  sound,  a  committee  is  appointed 
by  the  chairman  to  investigate  and  report  their  findings  and  suggestions  at  the 
next  meeting  (unless  the  matter  is  satisfactorily  settled  by  discussion  when  it 
is  first  put  forward),  at  which  time  the  remedy  proposed  is  discussed  and 
criticised,  and  if  it  appears  practical,  put  to  a  vote.  If  the  majority  are  m 
favor  it  is  immediately  tried  out  in  the  shop.  From  the  time  it  is  put  in 
practice  in  the  shop,  its  continuation  is  left  entirely  in  the  hands  of  the  manage- 
ment to  decide. 

"We  find  our  foremen's  meetings  to  work  out  nicely-it  gives  the  men  a 
chance  to  get  together,- gives  them  a  chance  to  get  a  perspective  of  the  shop 
as  a  whole-and  we  believe  th^t  the  discussions  which  ensue  tend  to  broaden 
them  and  that  occasionally  they  get  an  idea  from  the  other  fellow." 

THE  PROCTOR  &  GAMBLE  CO.,  Ivorydale,  Ohio. 

"About  a  year  ago  we  inaugurated  at  this  plant  and  at  our  Kansas  City 
plant  what  we  have  designated  as  The  Employees  Conference  Plan  of  the 
Proctor  &  Gamble  Company. 

"We  feel  that  the  'Shop  Committee'  or  'Conference  Committee,'  as  we 
have  chosen  to  call  it,  is  going  to  be  very  helpful  in  the  solution  of  the  problem 
of  industrial  relations. 

215 


"Our  plan  has  been  in  operation  only  a  few  months  and  at  the  beginning 
there  was  considerable  reticence  upon  the  part  of  the  employees'  representatives 
to  participate  in  discussion,  but  this  is  wearing  away  and  we  feel  that  we  are 
closer  to  the  employees  and  they  are  closer  to  us  than  they  were  at  the  beginning, 
and  we  are  hopeful  that  the  desired  results  can  ultimately  be  attained  by  the 
development  of  this  plan." 

The  Employees'  Conference  Plan  follows: 

Preamble 
A  mutual  understanding  between  the  employees  and  the  management  has 
always  existed  in  the  Protor  &  Gamble  Company  organization.  Unity  of  in- 
terest has  been  recognized  and  practiced  by  both.  Friendly  relations  have 
prevailed  to  an  uncommon  extent;  and  all  of  this  is  reflected  in  the  relations 
between  the  employees  and  the  company  as  they  exist  today. 

Changes  are  occurring  in  the  industrial  life  of  the  Nation;  these  changes 
affect  our  organization  alike  with  others.  In  former  days,  when  the  number 
of  employees  was  not  so  great,  there  was  closer  contact  between  the  employees 
and  the  management;  each  was  easier  of  access  to  the  other,  and  each  understood 
better  the  aims  and  ambitions  of  the  other.  Such  relations  are  essential  to  the 
happiness  and  prosperity  of  the  workers  and  to  the  success  of  the  industry. 

In  order  to  promote  mutual  understanding,  to  effect  a  friendly  relationship 
and  to  bring  about  efficient  co-operation  to  a  greater  extent  than  has  existed 
heretofore,  and  to  provide  a  plan  whereby  the  desired  results  can  be  attained 
we  have  formulated  and  hereby  adopt  for  our  future  dealings  The  Employees^ 
Conference  Plan  of  the  Proctor  &  Gamble  Company. 

The  purpose  of  the  plan  is  to  provide  for  regular  conferences  between 
representatives  of  the  employees  and  representatives  of  the  management,  in 
order  to  afford  to  the  employees  ready  means  of  making  suggestions  and  of 
bringing  to  the  direct  attention  of  the  management  matters  which,  in  their 
opinion,  need  adjustment  or  correction,  as  well  as  to  give  to  the  management 
opportunity  to  outline  its  views  and  plans  to  the  workmen,  to  the  end  that  both 
may  benefit  and  that  a  fuller  understanding  between  them  shall  exist. 

The  employees  shall  elect  from  among  their  number,  representatives  to 
serve  on  the  Employees'  Conference  Committee. 

The  election,  organization  and  activities  of  this  committee  shall  accord  with 
the  provision  of  the  Constitution  and  By-laws  to  be  prepared  and  adopted  later. 

Constitution 
(Adopted  August  5,   1918) 

Article  I 
Name.— The  name  of  this  organization  shall  be  "The  Employees'  Conference 
Committee"  of  The  Proctor  &  Gamble  Company. 

Article  II 
Structure  of  Committee. — The  committee  shall  consist  of  representatives  of 
the  employees  of  The  Proctor  &  Gamble  Company,  to  be  elected  by  and  to 
represent  the  employees  of  the  several  departments. 

Any  employee  shall  be  eligible  for  election  as  representative,  who  is  an 
American  citizen,  or  has  filed  his  first  application  for  citizenship,  and  who  has 
been  in  the  employ  of  the  company  continuously  for  one  year,  just  prior  to 
the  election. 

216 


t> 


^         MA 


w     ■>. 


•      ■• 


^      I* 


Article  III 

Election  of  Representatives.— The  several  departments  of  the  plant  (sub- 
stantially as  subdivided  heretofore)  shall  each  and  separately  elect  its  repre- 
sentative or  representatives  to  The  Employees'  Conference  Committee,  accord- 
ing to  these  provisions : 

Those  departments  having  fifty  (50)  or  less  employees  who  receive  pay  on 
the  first  pay-day  after  April  1,  shall  elect  one  representative  only. 

Those  departments  having  more  than  fifty  (50)  employees,  who  receive 
pay  on  the  first  pay-day  after  April  1,  may  elect  one  representative  for  each 
fifty  (50)   such  employees. 

As  new  departments  are  created  hereafter,  representation  shall  be  provided 
for  by  the  committee. 

The  representatives  of  the  employees  shall  in  1918  be  elected  (by  secret 
ballot  of  the  employees)  during  the  month  of  April,  and  in  subsequent  years, 
between  April  1  and  15.  One-half  of  the  number  of  representatives  elected  in 
1918  shall  serve  for  one  year  and  one-half  shall  serve  for  two  years. 

In  subsequent  years,  all  of  the  representatives  elected  to  serve  on  the  Em- 
ployees' Conference  Committee  shall  be  elected  to  serve  for  two  years. 

At  the  April  meeting  of  each  year,  the  secretary  shall  submit  to  the  chair- 
man a  list  of  names  of  the  members  whose  terms  will  have  expired  at  the  end 
of  that  month.  The  chairman  shall  arrange  to  have  these  notices  posted  on  the 
bulletin  boards  in  the  departments  which  these  members  represent.  The  chairman 
vice-chairman  and  secretary,  together  with  the  superintendent  of  the  plant,  shall 
arrange  to  have  the  employees  of  those  departments  select  a  nominating  com- 
mittee, to  nominate  candidates  for  election  as  representative,  and  to  hold 
election  in  proper  and  legal  manner,  between  April  1  and  April  15,  as  provided. 
The  names  of  representatives  so  elected  shall  be  promptly  submitted  to  the 
chairman  and  these  members  so  elected  shall  take  office  at  the  regular  meeting 
held  on  the  first  Monday  of  May. 

All  permanent  employees  of  the  operating  departments  of  the  plant,  who 
have  been  in  the  employ  of  the  company  for  sixty  days  just  prior  to  the  election, 

shall  be  eligible  to  vote. 

Article  IV 

Election  to  Fill  Vacancy. — Any  vacancy  in  the  Employees'  Conference  Com- 
mittee, occurring  from  any  cause,  shall  be  filled  by  holding  a  special  election 
in  the  department  which  he  represents,  within  thirty  (30)  days  from  the  date 
of  such  vacancy.  Such  representatives  shall  in  all  cases  be  elected  to  serve  the 
unexpired  term  of  the  representative  whom  he  succeeds. 

Article  V 
Officers. — The  Employees*  Conference  Committee,  so  elected,  shall  meet  on 
the  first  Monday  of  May  next  following  the  election,  and  shall  organize  by  the 
election,  from  among  their  number  and  for  a  term  of  one  year,  a  chairman,  a 
vice-chairman  and  a  secretary.  At  this  meeting  the  committee  shall  arrange  for 
holding  regular  meetings,  for  conference  with  representatives  of  the  manage- 
ment. 

Article  VI 

Representatives  of  the  Management,  who  shall  attend  the  regular  meetings 
of  the  Employees'  Conference  Committee  shall  be  selected  from  time  to  time 
by  the  president  or  general  manager  of  the  company. 

217 


Article  VII 

.^feetitigs.—'fhe  committee  shall  meet  at  least  once  each  month  The  regu- 
lar meetings  shall  be  held  on  the  first  Monday  of  the  month  between  the 
hours  of  6  P.  M.  and  9  P.  M.,  if  possible. 

In  order  to  promote  friendly  relationship  among  all  those  who  attend  the 
meetings,  it  shall,  if  possible,  be  arranged  to  serve  supper  to  all  those  who 
attend  these  regular  meetings;  the  regular  business  meeting  to  be  held  imme- 
diately after  supper. 

Article  VIII 
Duty  of  Officers.— It  shall  be  the  duty  of  the  chairman'  to  preside  at  all 
meetings  of  the  Employees'  Conference  Committee  and  of  the  E.xecutive  Council, 
to  preserve  order  and  enforce  the  Constitution  and  By-laws.  He  shall  decide 
all  questions  of  order,  subject  to  appeal;  he  shall  have  no  vote  except  for  the 
election  of  officers. 

It  shall  be  the  duty  of  the  vice-chairman,  in  the  absence  of  the  chairman, 
to  discharge  the  duties  of  the  chairman. 

It  shall  be  the  duty  of  the  secretary  to  keep  full  and  correct  record  of 
all  of  the  meetings  of  the  committee;  a  list  of  all  members  of  the  committee 
showing  date  of  expiration  of  their  membership;  to  issue  written  or  printed 
notices  of  all  regular  and  special  meetings  of  the  committee,  same  to  be  sent 
by  mad  or  messenger  to  all  members;  keep  complete  record  of  all  meetings  of 
the  Executive  Council;  and  at  the  expiration  of  his  term  of  office,  to  turn  over 
all  books,   records,  etc.  to  his  successor. 

Article  IX 
Conduct  of  Meetings.— At  the  regular  meetings  of  the  committee,  any  repre- 
sentative may  present  for  discussion  and  vote,  any  matter  or  matters  affecting 
the  general   welfare  of   the  employees   in   their   relationship   to  The   Proctor  & 
Gamble  Company. 

Two-thirds  of  all  the  duly  elected  members  of  the  committee,  present  at 
any  meeting,  shall  constitute  a  quorum. 

Parliamentary  rules  shall  govern  proceedings  of  all  meetings. 

A  complete  stenographic  record  of  the  proceedings  of  all  meetings  shall  be 
made  and  a  transcribed  copy  shall  be  made  a  part  of  the  permanent  records  of 
the  committee. 

Any  recommendation  of  the  committee,  which  has  been  approved  by  the 
affirmative  vote  of  three-fourths  of  all  of  the  members  of  the  committee  present 
at  the  meeting,  when  the  recommendation  is  voted  upon,  and  which  has  been 
concurred  in  by  the  rcpreseutatiz-es  of  the  management  present  at  the  meeting, 
shall  he  considered  as  final. 

Any  recommendation,  which  has  been  approved  by  the  affirmative  vote  of 
three-fourths  of  all  of  the  members  of  the  committee  present,  but  which  has 
not  been  concurred  in  by  the  representatives  of  the  management  present  at  the 
meeting,  shall  be  brought  up  for  further  discussion  at  a  special  meeting  to  be 
held  two  weeks  later.  If  it  is  not.  at  this  meeting,  approved  and  affirmed,  as 
provided  in  the  preceding  paragraph,  it  shall  then  be  referred  to  the  Board  of 
Directors  of  the  company  for  decision. 

Any  recommendation  or  proposed  action,  which  has  been  defeated  by  failing 
to  receive  such  affirmative  vote  of  three-fourths  of  all  of  the  members  of  the 
committee  present,  shall  not  be  brought  up  for  action  again  within  three  months, 
except  by  the  unanimous  vote  of  all  members  present  at  any  regular  meeting 
of  the  committee  during  that  period. 

218 


'i 


Article  X 

Executive  Council.— The  three  officers  as  provided,  together  with  four 
other  members  selected  by  the  chairman,  shall  constitute  the  Executive  Council. 
The  selection  of  these  four  members  of  the  Executive  Council  shall  be  approved 
by  the  affirmative  vote  of  three-fourths  of  all  of  the  members  of  the  committee 
present  at  the  next  regular  meeting  following  .the  meeting,  at  which  the  officers 
are  elected. 

Executive  Council  shall  be  called  together  by  the  chairman  whenever  he 
may  deem  it  necessary  in  the  interval  between  the  regular  meetings  of  the 
Employees'  Conference  Committee,  to  consider  any  matter  or  matters  pertaining 
to  the  general  interest  or  welfare  of  the  employees,  which,  in  his  opinion,  should 
be  brought  up  for  preliminary  consideration  or  discussion,  prior  to,  or  in 
preparation  for,  the  next  regular  meeting  of  the  committee. 

Article  XI 
Special  Committees.— Any  matter,  which  may  be  presented  for  the  con- 
sideration of  the  Conference  Committee,  which  requires  special  investigation 
or  consideration,  may  be  referred  to  a  "Special  Committee"  of  five  members 
of  the  Conference  Committee,  to  be  selected  by  the  chairman,  and  announced 
and  assigned  to  specific  duty  at  a  regular  meeting;  such  "Special  Committee" 
shall  serve  only  for  the  specific  purpose  for  which  selected  and  shall  automatically 
adjourn  sine  die  when  such  special  duty  is  finished. 

Article  XII 

Amendments.— This  Constitution  can  be  amended  only  by  the  following 
procedure : 

Notice  of  proposed  amendment  must  be  submitted  in  writing  to  the  presi- 
dent or  secretary,  who  shall  bring  same  to  the  attention  and  consideration  of 
the  Executive  Council  at  the  Council's  first  meeting  thereafter. 

If  the  consideration  thereof  is  approved  by  the  Executive  Council,  notices 
of  the  proposed  amendment  shall  be  posted  on  the  bulletin  boards,  not  less 
than  seven  days  before  the  next  regular  meeting  of  the  Conference  Committee. 
The  proposed  amendment  shall  be  discussed  at  this  regular  meeting  of  the 
Conference  Committee,  and  to  be  adopted,  must  receive  the  affirmative  vote 
of    three-fourths    of    the    total    membership    of    the    Employees'     Conference 

Committee. 

Article  XIII 

Order  of  Business. 

1— Roll  call. 

2 — Reading  of  the  Minutes. 
3 — Report  of  Executive  Council. 
A — Report  of  Special  Committees. 
5 — Unfinished  Business. 
6 — New  Business. 
7 — General  Discussion. 
8 — Adj  ournment. 
The  above  is  subject  to  change,  if  the  officers  find  it  necessary. 

BY-LAWS  . 
Article  I 

Members  will  be  expected  to  attend  all  regular  meetings  of  the  Employees' 
Conference    Committee.      Absence    on    account    of    sickness    or    death    will    be 

excused. 

219 


Article  II 
Any  member  who  fails  to  attend  two  consecutive  meetings  of  the  Employees* 
Conference  Committee,  shall  receive  notification  from  the  secretary  of  his 
delinquency,  and  if  he  fails  to  attend  three  regular  consecutive  meetings,  he 
shall  forfeit  his  membership,  and  the  officers  shall  make  provision  for  election 
of  his  successor. 

SIMPLEX  WIRE  &  CABLE  CO.,  Boston,  Mass. 

"We  have  a  Shop  Committee  which  is  elected  by  the  employees  with  the 
representation  so  distributed  that  each  department  is  represented  in  proportion 
to  the  number  of  men  in  the  department.  This  committee  is  consulted  on  a 
variety  of  subjects  which  we  consider  affect  them  directly,  and  in  all  cases  to 
date  we  have  had  very  good  co-operation  and  satisfactory  results. 

"However,  our  experience  is  so  comparatively  limited  that  we  are  not  in  a 
position  to  make  any  extended  statement." 

STANDARD  OIL  COMPANY,  26  Broadway,  New  York,  N.  Y. 

/.  Industrial  Representation  Plan.— In  March,  1918.  the  directors  decided 
to  inaugurate  an  Industrial  Representation  Plan  under  which  each  wage-earner 
m  the  employ  of  the  company  would  be  entitled  to  participate  in  an  election, 
by  secret  ballot,  of  representatives  to  be  chosen  from  among  his  fellow- 
employees.  The  reasons  for  this  step  and  the  method  of  carrying  it  into  effect 
are  outlined  in  the  attached  copy  of  an  election  call  which  was  posted  at  each 
of  the  New  Jersey  refineries.  (See  Exhibit  "A").  In  May  this  plan  of  Industrial 
representation  was  extended  to  the   refineries  located  outside  of  New  Jersey. 

//.  Joint  Conference.— ¥o\\ovi\r\g  the  election  of  representatives  at  the  New 
Jersey  refineries,  the  officers  and  directors  of  the  company,  and  the  superin- 
tendents and  foremen  from  the  plants  met  with  the  newly  elected  representatives 
in  joint  conference  at  No.  26  Broadway,  on  the  evening  of  April  1st.  This 
conference  was  preceded  by  a  dinner.  At  this  conference  the  following  agree- 
ment was  adopted: 

///.    Joint  Agreement.— Tht  agreement  adopted  by  a  unanimous  vote  of  all 
present  at  the  first  joint  conference  is  now  the  basis  of  the  company's  labor 
policy  at  the  various  refineries,  it  having  been  adopted  first  by  the  New  Jersey 
representatives   and   later  by  the   representatives  of  all   other   of   its   refineries 
(See  Exhibit  "B"). 

Exhibit  A.— Standard  Oil  Company  (New  Jersey) 

Bayonne    Works 

ANNOUNCEMENT  TO  EMPLOYEES 
This  company  invites  the  co-operation  of  every  employee  in  seeing  to*  it 
that  its  long  established  policy  for  fair  treatment  of  all  employees  in  matters 
pertaining  to  wages  and  working  conditions  is  maintained,  and  the  company, 
on  its  part,  desires  to  co-operate  as  far  as  may  be  helpful,  with  each  employee 
m  his  plans  to  provide  satisfactory  living  and  social  conditions  for  himself 
and  family. 

In  order  that  each  employee  at  the  Bayonne  Works  may  be  enabled  to 
thus  co-operate  most  effectively,  the  company  invites  employees  to  elect  from 
their  own  number,  by  secret  ballot,  men  in  whom  they  have  confidence,  who 
shall  represent  them  in  dealing  with  officers  and  other  representatives  of  the 
company  in  matters  of  mutual  interest,  this  election  to  be  on  the  general  basis 

220 


i 


I 


\ 


of  one  (1)   representative  to  every  one  hundred  fifty   (150)   employees,  with  at 
least  two   (2)   representatives  in  each  division  of  the  works. 

The  persons  thus  selected  by  the  employees  will  be  their  duly  accredited 
representatives  at  a  joint  meeting  with  the  representatives  of  the  company, 
which  it  is  proposed  to  hold  at  26  Broadway,  New  York,  April  1,  1918,  for  the 
purpose  of  getting  better  acquainted  and  of  discussing  matters  of  mutual  con- 
cern. They  will  also  be  the  accredited  representatives  of  the  employees  at  all 
subsequent  meetings  and  in  all  matters  of  co-operation  between  the  company 
and  its  employees,  until  the  employees  shall  designate  some  other  person  to 
represent  them.  It  is,  therefore,  highly  important  that  the  employees  choose 
with  the  utmost  care  those  of  their  number  in  whom  they  have  most  confidence. 

To    facilitate   this    election    employees    of    the    Bayonne    Works    have    been 
grouped  into  divisions,  as  follows : 


DIVISION 


First 


INCLUDING 

j  Boilermakers 


NO.  OF  representatives 


Second 


I  Blacksmiths 

Carpenters 
Painters 
Leadburners 
Machinists 

Masons 
Pipefitters 

Third    ^Tinsmiths 

/Railroad  , 

\  Hoisting  Engineers 

Fourth    Common    Labor    ^ 

Fifth   Watchmen  2 

/Refy.  Process  No.  1 

Sixth  I  Refy.  Process  No.  2 

(Pitch   Plant 

Seventh    Refinery  No.  3  Stills 

Eighth    Still  Cleaners 

Ninth    Power   Department 

Tenth    Paraffine  Process   . . 

Eleventh    Barrel   Factory    

Twelfth    Cooperage  Dept.  . . . 

Thirteenth   Case  and  Can  Dept 


2 
2 
2 

3 
3 
3 
7 


Fourteenth 


Bergenport  Chemical  Co 2 


37 


This  election  will  be  held  according  to  the  following  plan  on  the  day  and 
night  of  Wednesday,  March  27,  1918,  in  order  that  both  the  day  and  night  shift 
may  have  an  opportunity  to  vote. 

Each  employee  who  is  a  wage-earner  will  be  handed  a  ballot  by  the  time- 
keeper, on  which  he  will  be  asked  to  write  or  have  written  as  his  choice  the 
names  of  as  many  fellow  wage  earners  in  his  division  as  the  number  of  repre- 
sentatives such  division  is  entitled  to.  He  should  name  not  more  than  one 
from  a  department,  in  cases  where  a  division  includes  more  than  one  department. 

221 


This  ballot  will  be  deposited  in  a  ballot  box  and  counted  by  the  timekeeper, 
and  the  employees  of  each  division  are  requested  to  select  one  of  their  number 
to  aid  in  supervising  the  election.  The  result  of  the  election  shall  be  posted  in 
each  division,  and  the  two  or  more  in  each  division  receiving  the  highest 
number  of  ballots  shall  l)e  declared  elected  as  representatives,  provided  that 
in  divisions  including  more  than  one  department,  no  department  shall  have 
more  than   one  representative. 

Each  employee  is  urged  to  participate  in  this  election  in  order  that  repre- 
sentatives may  be  selected  as  the  result  of  a  full  and  free  choice  on  the  part 
of  the  employees. 

W.   C.  Teagle.  President. 
Approved:     A.  C.  Bedford,  Chairman  of  the  Board, 
March  25,   1918. 

Exhibit  A.— Standard  Oil  Company   (New  Jersey) 
JOINT  AGREEMENT 

I.  EMPm>Mi  NT  Dii'aktment: 

This  department  will  be  organized  at  each  of  the  works,  the  official  in 
charge  to  be  responsible  to  the  superintendent  of  the  works,  and  to  have  the 
following  duties : 

/.     To  engage  all  nciv  employees: 

(a)  This  will  involve  keeping  in  touch  with  the  foremen  and  super- 
tendents  and  being  fully  advised  as  to  the  employment  needs  in 
each  department. 

(b)  Applicants  should  be  judged  from  the  following  standpoints: 

(1)  Follow  such  limitations  as  to  age  as  may  be  established  by  the 
Board  of  Directors  from  time  to  time. 

(2)  No  discrimination  to  be  made  on  account  of  membership  or 
non-meml)ersliip  in  any  church,  society,  fraternity  or  union. 

(3  Ascertain  by  personal  interview  whether  applicant  is  (|uaHfied 
intellectually  and  by  experience  for  the  particular  work  under 
consideration.  Tlie  result  of  such  interview  to  be  recorded  on 
regular  blanks  and  kept   for  the  purpose  of  future  record. 

(4)  If  applicant  is  satisfactory  in  the  above  respects,  refer  him  to 
the  company  surgeon  for  jjhysical  examination  in  accordance 
with  established  rules.  No  employee  to  be  engaged  unless  he 
passes  satisfactorily  such  physical  examination.  All  cases  of 
doubt  or  uncertainty  in  this  respect  to  be  referred  to  the 
superintendent   for   decision. 

2.  To  act  as  Clearing  House  in  transfers  of  employees  from  departments 
where   work   is   slack  to   other   departments   needing  men. 

3.  Employees  should  be  encouraged  to  come  to  the  Employment   Depart- 

ment for  friendly  counsel  in  personal  matters,  or  in  case  they  have 
valid  reasons  for  desiring  to  be  transferred  to  work  in  another 
department. 

II.  Discipline: 

1.     As  to  discharges: 

(■a)  The  following  is  a  list  of  offenses  for  which  an  employee  may  be 
suspended  or  dismissed  without  further  notice:  This  list  to  be 
posted   conspicuously   in   each    department : 

222 


f  ■       *- 


•      u     n 


Offenses  for  Which  an  Employee  May  Be  Suspended  or  Dismissed 

Without  Further  Notice 

1.  Violation  of  any  law: 

Special  attention  is  called  to  the  following: 

(a)  Carrying  concealed  weapons;  fighting  or  attempting  bodily  injury 
to  another;  drunkenness;  conduct  which  violates  the  common 
decency  or  morality  of  the  community; 

(b)  Stealing,  or  malicious  mischief  resulting  in  injury  or  destruction 
of  property  of  other  employees  or  of  the  company. 

(c)  Cruelty  to  animals,  the  property  of  other  employees  or  of  the 
company. 

2.  Violations  of  the  following  safety  rules: 

(a)  Carelessness  in  regard  to  accident  and  safety  of  fellow-workmen. 

(b)  Riding  on  standard  or  narrow  gauge  equipment  or  on  any  moving 
machinery  where  not  assigned. 

(c)  Running  up  blocks  on  cranes. 

(d)  Violation  of  rules  governing  employees  in  repairing  or  oiling  of 
moving  machinery. 

(e)  Failure  to  wear  safety  goggles  that  have  been  provided. 

(/)  Smoking  or  carrying  matches  other  than  safety  matches  or  having 
open  lights  or  fires  within  prescribed  limits  where  such  practice 
is  forbidden. 

3.  Failure  to  immediately  report  accidents  or  personal  injuries  to  the  delegated 

authority  wherever  possible. 

4.  Insubordination    (including  refusal  or   failure  to  perform  work  assigned) 

or   use   of   profane   or   abusive   language   toward    fellow   employees    or 
officials  of  the  company. 

5.  Absence  from  duty  without  notice  to  and  permission  from  superintendent 

or  foremen,  except  in  case  of  sickness  or  cause  beyond  his  control  of  a 
character  that  prevents  his  giving  notice. 

6.  Harboring  a  disease  that  on  account  of  his  own  carelessness  will  endanger 

fellow-workmen. 

7.  Changing   working   place   without   orders    or    prowling   around    the    works 

away  from  assigned  place. 

8.  Falsifying  or  refusing  to  give  testimony  when  accidents  are  being  investi- 

gated, or  for  false  statements  when  application  and  physical  examina- 
tion is  being  made. 

9.  Neglect    or    carelessness    resulting    in    damage    to    railroad    equipment,    or 

neglect  of  car  dropper  to  properly  set  brakes  on  railroad  cars   in   his 
charge. 

10.  Wilful  neglect  in  care  or  use  of  company's  property. 

11.  Obtaining   material   at   storehouse   or   other    assigned   places    on    fradulent 

orders. 

12.  Sleeping  while  on  duty. 

13.  Offering  or  receiving  money  or  other  valuable  consideration  in  exchange 

for  a  job,  better  working  place  or  any  change  in  working  conditions. 

14.  Introduction,  possession  or  use  on  the  property  of  the  company  of  intoxi- 

cating liquors. 

15.  Habitual   use   of   habit-forming  drugs  or  their   introduction   or   possession 

on  the  property  of  the  company. 

223 


2.  For  other  offenses  not  on  the  above  list,  an  employee  shall  not  be  dis- 
charged without  first  having  been  notified  that  a  repetition  of  the  offense  will 
make  him  liable  to  dismissal.  Such  notice  may  be  given  by  the  foreman  who 
shall  forthwith  send  a  copy  of  such  notification  to  the  Employment  Department. 

3.  Foremen  finding  that  the  interests  of  the  business  require  the  suspension 
or  dismissal  of  an  employee  for  the  commission  of  any  one  of  the  posted  list 
of  offenses,  or  for  the  commission  of  any  other  offense  after  warning  notice  has 
been  given,  shall  report  the  case  fully  to  the  Employment  Department.  This 
department,  after  investigation,  may  approve  the  proposed  suspension,  or 
arrange  to  transfer  the  employee,  or.  if  the  facts  warrant,  discharge  him  after 
securini?  the  approval  of  the  superintendent  of  the  works. 

4.  .1  list  of  stisfensions  and  discharges,  together  with  the  reasons  for  same, 
shall  be  forwarded  to  the  Manufacturing  Department  monthly. 

III.  Right  of  Appeal: 

Any  employee  who  feels  that  he  has  been  unjustly  treated  or  subjected  to 
any  unfair  conditions,  has  the  right  of  appeal  to  the  general  superintendent  and 
the  higher  officials  of  the  company,  provided  he  shall  first  seek  to  have  the 
matter  adjusted  by  conference,  in  person  or  through  his  regularly  elected  repre- 
sentative, with  the  foreman  or  the  Employment  Department. 

Before. such  appeal  shall  be  taken  to  any  official  not  located  at  the  plant 
it  shall  first  be  considered  in  a  joint  conference  composed  of  the  employees* 
representatives  in  the  division  affected,  and  an  equal  number  of  representatives 
of  the  company.  In  case  such  conference  fails  to  agree  unanimously  as  to  a 
fair  adjustment,  an  appeal  may  be  made  to  the  Executive  Council  at  the  works, 
or  in  case  such  a  council  has  not  been  organized,  to  a  conference  composed  of 
all  of  the  employees'  representatives  at  the  works  together  with  an  equal  number 
of  company  representatives. 

IV.  Wage  Adjustments: 

Future  wage  adjustments  shall  be  made  in  joint  conference  between  the 
employees'  representatives  in  the  division  affected  and  representatives  of  the 
company,  such  adjustments  to  be  subject  to  the  approval  of  the  Board  of 
Directors. 

V.  Joint  Conferences  : 

Joint  conferences  of  employees'  representatives  and  company  representatives 
shall  be  held  at  each  of  the  works  at  least  quarterly  to  discuss  any  matters  of 
mutual  interest.  A  general  conference  of  all  employees'  representatives  from 
the  various  works  and  of  company  representatives  shall  be  held  annually  at 
the  call  of  the  president.  At  all  joint  conferences  the  number  of  company 
representatives  shall  not  exceed  the  number  of  employees'  representatives. 

Standard  Oil  Co.— In  a  letter  of  October  22,  1918,  Mr.  C.  J.  Hicks,  Executive 
Assistant  to  the  President,  says : 

"The  introduction  of  this  plan  last  March  was  entirely  voluntary  on  the 
part  of  the  company.  It  was  not  caused  by  any  threatened  labor  trouble  or  by 
any  order  of  the  government.  Our  experience  in  adjustment  of  wages  and 
working  conditions  and  grievances,  and  the  securing  of  valuable  co-operation 
in  other  matters  has  been  most  satisfactory  both  to  the  company  and  to  its 
employees.  .  .  .  You  will  note  that  provision  was  made  for  secret  ballot 
which  was  taken  at  the  plant  during  working  hours,  under  such  safeguards  as 
absolutely   insured    its    fairness.     This   plan   of   election   secured    the   personal 

224 


\ 


^ 


t 


/ 


Y        1 


interest  and  participation  of  from  90%  to  100%  of  the  wage  earners  at  our 
various  refineries.  We  do  not  believe  that  it  would  have  been  possible  to 
secure  such  a  general  expression  of  opinion  if  an  attempt  had  been  made  to 
arrange  for  this  election  to  be  held  at  a  meeting  outside  of  the  plant." 

STANDARD  WOVEN  FABRIC  COMPANY,  Walpole,  Mass. 

"We  have  at  the  present  a  committee  composed  of  the  plant  foremen.  In 
this  connection  I  would  call  your  attention  to  the  fact  that  we  employ  only 
250  to  300  people  in  our  plant,  and  our  foremen  are  in  close  touch  with  all 
members  of  our  plant  organization.  We  conduct  weekly  meetings,  at  which  plant 
matters  are  taken  up  and  discussed,  such  as  suggestions,  changes  and  personal 
matters.  This  system  has  been  in  operation  for  approximately  a  year  and  works 
very  well." — E.  O.  Christiansen,  General  Manager. 

THE  SUNVILLE  BAKING  COMPANY,  Pueblo,  Colorado. 

"I  am  thoroughly  convinced  that  co-operative  management  is  one  of  the 
fundamental  principles  of  an  efficient  and  harmonious  organization.  I  did  not 
start  out  with  this  idea,  but  have  come  to  believe  in  it  as  the  result  of  years 
of  experience  and  experiment, 

"I  am  just  now  trying  to  work  out  a  practical  plan  which  will  enable  the 
employees  to  pass  upon  the  qualifications  of  their  fellow  employees  and  of  their 
superiors  all  the  way  from  their  immediate  foreman  to  the  manager.  My 
experience  has  taught  me  that  an  organization  conducted  along  these  lines  will 
attract  the  best  men  in  an  industry  and  that  those  men  may  be  safely  trusted 
to  any  extent,  with  the  possible  exception  of  deciding  policies.  We  have  only 
a  small  organization  and  it  is  easier  to  handle  than  a  large  one  would  be,  but 
I  maintain  that  the  principle  upon  which  we  are  working  is  right,  and  if  it  is 
right,  it  can  be  made  to  work  in  any  kind  of  an  organization,  the  only  difference 
being  in  the  time  required  to  put  it  in  operation.  Employees  will  rise  to  this 
kind  of  responsibility  when  the   responsibility  is  put  upon   them. 

"We  have  not  completed  a  definite  plan  for  enabling  the  employees  to  pass 
upon  the  qualifications  of  their  fellows  and  of  their  immediate  superiors,  but 
we  do  get  their  opinions  and  do  not  consider  any  man  a  permanent  part  of  the 
organization  until  we  find  he  is  satisfactory — both  in  his  work  and  his  general 
conduct  as  a  citizen  and  a  gentleman.  The  result  is  that  the  efficiency  and 
morale  of  our  organization  is  so  high  that  we  can  pay  higher  wages  than  our 
competitors  and  still  have  a  lower  cost.  We  have  absolutely  no  fear  of  com- 
petition. 

"This  is  a  proposition  which  must  be  approached  without  prejudice  and 
without  mental  reservations.  An  employer  who  tries  this  scheme  without 
believing  in  it  himself  will  certainly  fail.  Any  doubt  or  lack  of  sincerity  upon 
the  part  of  the  manager  will  be  recognized  at  once  by  the  employees.  The 
employer  must  be  on  the  square  with  his  employees  in  the  strongest  and  most 
emphatic  sense  of  the  term  to  make  any  such  plan  successful,"— C.  J.  Powers, 
President. 

THE  WARNER  BROTHERS  COMPANY.  Bridgeport,  Conn. 

"We  operate  what  is  known  as  an  open  shop,  although  we  have  unions  and 
deal  with  union  conditions.  In  the  main,  we  have  found  it  fairly  satisfactory, 
especially  considering  the  class  of  help  we  have  as  compared  to  what  we  used 
to  have.    In  earlier  days  we  had  an  intelligent  class  of  people  that  could  think 

225 


INTENTIONAL  SECOND  EXPOSURE 


2.  For  other  offenses  not  on  tlie  above  list,  an  employee  shall  not  be  dis- 
charged without  first  having  been  notified  that  a  repetition  of  the  offense  will 
make  him  liable  to  dismissal.  Such  notice  may  be  given  by  the  foreman  who 
shall  forthwith  send  a  copy  of  such  notification  to  the  Employment  Department. 

3.  Foremen  finding  that  the  interests  of  the  business  require  the  suspension 
or  dismissal  of  an  employee  for  the  commission  of  any  one  of  the  posted  list 
of  offenses,  or  for  the  commission  of  any  other  offense  after  warning  notice  has 
been  given,  shall  report  the  case  fully  to  the  Employment  Department.  This 
department,  after  investigation,  may  approve  the  proposed  suspension,  or 
arrange  to  transfer  the  employee,  or,  if  the  facts  warrant,  discharge  him  after 
securing  the  approval  of  the  superintendent  of  the  works. 

4.  A  list  of  suspensions  and  discharges,  together  with  the  reasons  for  same, 
shall  be  forwarded  to  the  Manufacturing  Department  monthly. 

III.  Right  of  Appeal: 

Any  employee  who  feels  that  he  has  been  unjustly  treated  or  subjected  to 
any  unfair  conditions,  has  the  right  of  appeal  to  the  general  superintendent  and 
the  higher  officials  of  the  company,  provided  he  shall  first  seek  to  have  the 
matter  adjusted  by  conference,  in  person  or  through  his  regularly  elected  repre- 
sentative, with  the  foreman  or  the  Employment  Department. 

Before. such  appeal  shall  be  taken  to  any  official  not  located  at  the  plant 
it  shall  first  be  considered  in  a  joint  conference  composed  of  the  employees' 
representatives  in  the  division  affected,  and  an  equal  number  of  representatives 
of  the  company.  In  case  such  conference  fails  to  agree  unanimously  as  to  a 
fair  adjustment,  an  appeal  may  be  made  to  the  Executive  Council  at  the  works, 
or  in  case  such  a  council  has  not  been  organized,  to  a  conference  composed  of 
all  of  the  employees'  representatives  at  the  works  together  with  an  equal  number 
of  company  representatives. 

IV.  Wage  Adjustments  : 

Future  wage  adjustments  shall  be  made  in  joint  conference  between  the 
employees'  representatives  in  the  division  affected  and  representatives  of  the 
company,  such  adjustments  to  be  subject  to  the  approval  of  the  Board  of 
Directors. 

V.  Joint  Conferences: 

Joint  conferences  of  employees'  representatives  and  company  representatives 
shall  be  held  at  each  of  the  works  at  least  quarterly  to  discuss  any  matters  of 
mutual  interest.  A  general  conference  of  all  employees'  representatives  from 
the  various  works  and  of  company  representatives  shall  be  held  annually  at 
the  call  of  the  president.  At  all  joint  conferences  the  number  of  company 
representatives  shall  not  exceed  the  number  of  employees'  representatives. 

Standard  Oil  Co. — In  a  letter  of  October  22,  1918,  Mr.  C.  J.  Hicks,  Executive 
Assistant  to  the  President,  says : 

"The  introduction  of  this  plan  last  March  was  entirely  voluntary  on  the 
part  of  the  company.  It  was  not  caused  by  any  threatened  labor  trouble  or  by 
any  order  of  the  government.  Our  experience  in  adjustment  of  wages  and 
working  conditions  and  grievances,  and  the  securing  of  valuable  co-operation 
in  other  matters  has  been  most  satisfactory  both  to  the  company  and  to  its 
employees.  .  .  .  You  will  note  that  provision  was  made  for  secret  ballot 
which  was  taken  at  the  plant  during  working  hours,  under  such  safeguards  as 
absolutely   insured    its    fairness.     This   plan   of    election   secured    the   personal 

224 


I 


t 


i 


AJI 


^    -I 


interest  and  participation  of  from  90%  to  100%  of  the  wage  earners  at  our 
various  refineries.  We  do  not  believe  that  it  would  have  been  possible  to 
secure  such  a  general  expression  of  opinion  if  an  attempt  had  been  made  to 
arrange  for  this  election  to  be  held  at  a  meeting  outside  of  the  plant." 

STANDARD  WOVEN  FABRIC  COMPANY,  Walpole,  Mass. 

"We  have  at  the  present  a  committee  composed  of  the  plant  foremen.  In 
this  connection  I  would  call  your  attention  to  the  fact  that  we  employ  only 
250  to  300  people  in  our  plant,  and  our  foremen  are  in  close  touch  with  all 
members  of  our  plant  organization.  We  conduct  weekly  meetings,  at  which  plant 
matters  are  taken  up  and  discussed,  such  as  suggestions,  changes  and  personal 
matters.  This  system  has  been  in  operation  for  approximately  a  year  and  works 
very  well." — E.  O.  Christiansen,  General  Manager. 

THE  SUNVILLE  BAKING  COMPANY,  Pueblo,  Colorado. 

"I  am  thoroughly  convinced  that  co-operative  management  is  one  of  the 
fundamental  principles  of  an  efficient  and  harmonious  organization.  I  did  not 
start  out  with  this  idea,  but  have  come  to  believe  in  it  as  the  result  of  years 
of  experience  and  experiment. 

"I  am  just  now  trying  to  work  out  a  practical  plan  which  will  enable  the 
employees  to  pass  upon  the  qualifications  of  their  fellow  employees  and  of  their 
superiors  all  the  way  from  their  immediate  foreman  to  the  manager.  My 
experience  has  taught  me  that  an  organization  conducted  along  these  lines  will 
attract  the  best  men  in  an  industry  and  that  those  men  may  be  safely  trusted 
to  any  extent,  with  the  possible  exception  of  deciding  policies.  We  have  only 
a  small  organization  and  it  is  easier  to  handle  than  a  large  one  would  be,  but 
I  maintain  that  the  principle  upon  which  we  are  working  is  right,  and  if  it  is 
right,  it  can  be  made  to  work  in  any  kind  of  an  organization,  the  only  difference 
being  in  the  time  required  to  put  it  in  operation.  Employees  will  rise  to  this 
kind  of   responsibility  when   the  responsibility  is   put  upon  them. 

"We  have  not  completed  a  definite  plan  for  enabling  the  employees  to  pass 
upon  the  qualifications  of  their  fellows  and  of  their  immediate  superiors,  but 
we  do  get  their  opinions  and  do  not  consider  any  man  a  permanent  part  of  the 
organization  until  we  find  he  is  satisfactory — both  in  his  work  and  his  general 
conduct  as  a  citizen  and  a  gentleman.  The  result  is  that  the  efficiency  and 
morale  of  our  organization  is  so  high  that  we  can  pay  higher  wages  than  our 
competitors  and  still  have  a  lower  cost.  We  have  absolutely  no  fear  of  com- 
petition. 

"This  is  a  proposition  which  must  be  approached  without  prejudice  and 
without  mental  reservations.  An  employer  who  tries  this  scheme  without 
believing  in  it  himself  will  certainly  fail.  Any  doubt  or  lack  of  sincerity  upon 
the  part  of  the  manager  will  be  recognized  at  once  by  the  employees.  The 
employer  must  be  on  the  square  with  his  employees  in  the  strongest  and  most 
emphatic  sense  of  the  term  to  make  any  such  plan  successful." — C.  J.  Powers, 
President. 

THE  WARNER  BROTHERS  COMPANY,  Bridgeport,  Conn. 

"We  operate  what  is  known  as  an  open  shop,  although  we  have  unions  and 
deal  with  union  conditions.  In  the  main,  we  have  found  it  fairly  satisfactory, 
especially  considering  the  class  of  help  we  have  as  compared  to  what  we  used 
to  have.     In  earlier  days  we  had  an  inteUigent  class  of  people  that  could  think 

225 


for  themselves  and  you  could  deal  with  them  more  or  less  satisfactorily,  but 
we  have  a  good  many  foreigners  and  in  many  cases  it  is  almost  impossible  for 
us  to  reason  with  them  and  most  difficult  for  the  committees  themselves.  There 
is  always  a  temptation  to  the  committees  to  ask  for  more  than  they  should,  but 
this  has  to  be  borne  in  mind  in  meeting  the  situation.  The  committees  many 
times  have  been  able  to  accomplish  certain  things  with  the  help,  in  fairness 
■and  justice  to  the  help  as  well  as  ourselves,  that  we  have  been  unable  to 
accomplish. 

"Along  the  general  lines  of  the  efficiency  of  any  work  that  is  organized 
we  should  say  the  committees  are  fairly  successful.  Further  than  that,  in  a 
plant  as  large  as  ours  you  are  bound  to  have  some  managers  and  foremen  that 
are  not  even  fair  to  your  own  help  in  their  desire  to  make  good  on  their  own 
job.  and  your  shop  committee  is  decidedly  a  check  against  this  tendency." 

THE  WHITE  MOTOR  COMPANY,   Cleveland,  Ohio. 

"In  July,  1915,  we  installed  a  plan  of  meeting  our  employees  through  regular 
shop  committees. 

"These  committees  meet  every  two  weeks  on  the  company's  time.  Com- 
mittees are  elected  by  the  men  without  any  suggestions  or  interference  by  the 
company.  One  man  represents  approximately  ten  employees.  A  rotary  system 
of  election  is  in  force,  which  changes  the  personnel  of  the  committee  monthly, 
the  average  length  of  service  being  approximately  six  months. 

"It  is  our  custom  to  have  the  foremen  of  the  departments  represented  by 
the  committee  and  also  the  superintendent  of  same,  meet  with  the  men,  and 
the  time  of  meeting  is  so  arranged  that  it  is  possible  for  the  factory  manager 
or  any  of  its  assistants  to  attend  any  or  all  of  the  meetings,  if  desirable. 

"Each  committee  selects  its  own  chairman  and  secretary  and  records  are 
kept  of  each  meeting,  copy  of  which  is  posted  on  the  bulletin  boards  in  the 
departments  and  another  copy  is  filed  in  the  factory  manager's  office  for  his 
attention. 

"The  average  length  of  the  meeting  is  30  to  45  minutes. 

"Our  experience  has  shown  these  meetings  have  worked  to  the  mutual 
benefit  of  the  employees  and  the  management.  In  these  meetings  the  employee 
has  an  opportunity  to  express  himself  and  to  offer  suggestions  for  improvement, 
not  only  to  his  foremen  but  to  the  management  direct.  No  subject  is  barred 
from  these  meetings. 

"Questions  of  improvement  to  and  arrangement  of  machinery,  and  equip- 
ment, sanitation,  safety  devices,  improved  working  conditions,  cost  of  living, 
wages,  and  production  of  the  plant,  have  all  been  discussed. 

"These  committees  have  also  given  the  management  an  opportunity  to 
present  very  clearly  to  the  employees  on  short  notice  any  necessary  information 
or  any  change  in  policy.  Through  these  committees  we  have  been  able  to 
organize  and  promote  the  sale  of  liberty  bonds,  thrift  stamps,  and  other  pro- 
grams which  the  Government  has  brought  out  in  connection  with  the  war. 

"The  operation  of  the  committee  system  has  given  to  a  plant  as  large 
as  ours  all  the  advantages  of  the  small  shop,  in  which  the  manager  is  acquainted 
with  practically  every  employee  and  in  which  the  employee  is  thoroughly  familiar 
with  his  policies. 

"We  have  never  had  cause  to  regret  the  establishment  of  our  committee 
system,  which  has  proven  a  very  large  asset  in  the  building  of  our  factory 
organization  and  in  the  satisfactory  handling  of  our  production  problems.  A 
better    understanding    and    the    improved    conditions    which    have    been    brought 

226 


N 


) 


*  y.   * 


about  through  these  meetings  has  also  made  it  possible   for  us  to  reduce  our 
turnover  to  a  minimum." 

(P^or  a  full  discussion  of  the  employment  policies  of  this  company  see 
article  by  Boris  Emmet,  "Labor  Turnover  and  Employment  Policies  of  a  Large 
Motor  Vehicle  Manufacturing  Establishment,"  United  States  Bureau  of  Labor 
Statistics,  Monthly  Labor  Review,  October,  1918,  pp.  1-18.  The  committees  of 
the  company  are  described  on  pages  17  and   18.) 

WILLIAM  DEMUTH  &  CO.,  Richmond  Hill,  N.  Y. 

"This  company  introduced  about  May,  1917,  a  so-called  Industrial  Democ- 
racy System  of  Committees.  This  form  of  plant  government  is  based  by  analogy 
on  the  principles  of  the  constitution  of  the  United  States. 

"It  provides  that  the  legislative  body,  or  congress,  referred  to  above  has, 
with  the  confirmation  of  the  cabinet,  the  power  to  enact  and  enforce  all  laws, 
rules  and  regulations  for  the  conduct  of  the  factory,  and  its  decisions  are  binding 
as  well  upon  the  company  as  upon  the  employees.  The  cabinet  is  composed 
of  members  of  the  executive  board,  together  with  the  factory  and  the  sales 
managers,  the  president  of  the  corporation  being  its  presiding  officer. 

"The  senate  includes  the  superintendent,  the  heads  of  departments  and  the 
factory  foremen.  As  this  body  already  existed  when  the  system  was  installed, 
the  necessity  for  creating  it  did  not  arise,  but  the  constitution  provides  that 
changes  in  the  personnel  of  the  factory  executives  or  additions  to  their  number 
may  be  made  by  the  legislative  bodies.  Ordinarily  if  a  new  foreman  were 
needed  a  candidate  would  be  elected  by  the  house,  subject  to  the  confirmation 
of  the  senate  and  cabinet,  but  if  a  man  of  special  technical  training  were 
required  and  such  a  man  was  not  available  among  the  employees  the  cabinet 
would  submit  a  candidate  from  the  outside,  subject  to  the  ratification  of  the 
other  bodies. 

"The  house  of  representatives  is  limited  to  30  members,  who  are  elected 
annually  at  a  mass  meeting  of  the  employees.  As  the  number  employed  at 
present  is  about  eight  hundred,  one  member  of  the  house  therefore  represents 
about  twenty-five  employees.  To  be  eligible  for  membership  the  candidate 
must  have  three  qualifications:  First,  he  must  have  been  in  the  employ  of  the 
company  one  year  or  more;  second,  he  must  understand  and  speak  English; 
third,  he  must  be  known  by  all  to  be  'on  the  square.'  In  this  application  of 
democratic  principles  there  is  no  question  of  equal  suffage  as  the  gentler  sex  is 
well  represented  in  both  legislative  branches. 

"Meetings  of  the  three  governing  bodies  are  held  regularly  each  week,  the 
senate  being  convened  at  2  o'clock  p.  m.,  and  the  house  at  3.30.  The  meeting 
place  is  a  room  on  an  upper  floor  of  the  office  building  far  enough  removed 
from  the  factory  to  avoid  the  noise  and  confusion.  The  cabinet  meets  at  10 
o''clock  in  the  morning  of  the  same  day.  Each  house  of  congress  elects  a  chair- 
man, or  president,  and  a  secretary  who  keeps  a  minute  record  of  all  proceedings. 

"Business  is  transacted  according  to  the  usual  parhamentary  procedure. 
Questions  of  wages,  holidays,  hours  of  work,  benefits,  etc.,  come  under  dis- 
cussion; troubles  or  misunderstandings  are  brought  to  light  and  straightened 
out;  new  and  better  plans  of  operation  are  discussed  and  recommended— whether 
it  is  improved  machinery,  tools,  methods  or  men,  these  bodies  of  congress  have 
the  privilege  of  using  and  do  use  their  brains  in  the  interest  of  such  better 
service.  Committees  are  appointed  by  either  branch  separately  or  jointly,  and 
there  are  standing  committees  on  such  matters  as  safety,  suggestion,  welfare, 
ways  and  means,  etc.,  each  reporting  to  its  respective  appointing  body  its  findings, 

227 


which  are  deliberated  upon  and  if  found  feasible  are  recommended  for  enact- 
ment into  law.  A  resolution  by  any  branch,  including  the  cabinet,  does  not 
become  law  until  ratified  by  both  the  other  bodies,  but  when  such  resolution 
dt>es  become  law  it  is  considered  a  mutual  obligation.  Suggestions  upon  any 
pertinent  subject  may  be  made  to  the  Suggestion  Committee,  which  is  empowered 
to  make  any  award  they  deem  suitable  up  to  $5.  If  in  its  estimation  a  sug- 
gestion is  of  greater  value  it  presents  a  resolution  before  the  legislative  bodies 
and  the  additional  amount  of  the  award  is  thus  determined.  Likewise  the 
Safety  and  Welfare  committees  may  order  minor  changes  and  improvements 
looking  toward  the  safety  of  the  employee  and  the  betterment  of  his  working  con- 
ditions, reserving  all  matters  of  major  importance  for  the  action  of  the  congress." 
—(From  "An  Industrial  Democracy,"  by  Ellsworth  Sheldon,  American 
Machinist,  August  1,  1918.) 

The  company  makes  the  following  statement : 

"The  system  of  a  shop  committee  is  no  doubt  a  step  in  the  right  direction 
and  is  found  to  lead  to  a  better  understanding  and  mutual  good  will  between 
the  employer  and  his  men,  provided  this  committee  meets  at  regular  intervals 
to  perform  certain  distinct  functions,  and  is  not  only  called  on  certain  occasions 
to  straighten  out  troubles. 

"Our  efforts  towards  better  understanding  with  our  co-workers  have  been 
along  somewhat  different  lines,  but  naturally  with  the  same  ultimate  purpose 
in  mind.  About  IK'  years  ago  we  introduced  into  our  organization,  consisting 
of  about  900  people,  our  form  of  Industrial  Democracy,  and  we  are  very  glad 
to  say  that  we  feel  more  entliusiastic  about  same  today  than  we  'did  at  the 
start.  In  other  words,  it  has  worked  out  to  our  entire  satisfaction  and  we 
know  that  we  can  achieve  a  good  deal  more  than  we  have  up  to  now,  on 
account  of  the  splendid  spirit  of  co-operation  which  has  been  fostered  by  this 
system. 

"Since  the  introduction  of  this  plan,  we  have  by  request  of  the  workers 
tliemselves,  reduced  the  working  hours  from  53  to  50  per  week,  with  an 
increased  production  and  increased  earnings  as  a  result,  the  latter  being  accom- 
I)lished  without  any  change  of  piece  work  rates.  Recently  the  cabinet  suggested 
a  reduction  from  50  to  48  hours,  at  which  time  we  offered  an  adjustment  of 
piece  work  rates  to  offset  the  loss  of  time.  It  is  too  early  to  make  any  definite 
statement  as  to  the  result  of  this  latter  change,  but  certain  indications  lead  us 
to  believe  that  the  result  of  the  latter  change  will  be  just  as  gratifying  as  before. 
"We  believe  that  the  greatest  advantage  to  the  Industrial  Democracy  system 
lies  in  the  fact  that  in  the  regular  meetings  of  the  house  and  senate  any  possible 
troubles  are  discussed,  frankly  criticised,  and  disposed  of  before  they  begin 
to  be  real  difficulties.     In  other  words,  we  would  rather  apply  a  remedy  than 


a  cure. 


FROM  A  MFTAL-WARE  MANUFACTURING  COMPANY. 

A  large  company  witli  factories  in  various  parts  of  the  country  has  set 
up  a  shop  grievance  committee  plan.  An  official  of  this  company  writes: 
"I  am  very  much  interested  in  these  committees  and  am  taking  a  personal 
interest  in  them. 

"In  May,  1916,  the  employees  of  the  New  York  Branch  of  this  company 
walked  out  on  a  strike,  the  first  in  the  history  of  this  branch,  which  was  built 
more  than  thirty  years  ago.  Although  they  were  not  organized  the  shut  down 
was  complete.  There  was  no  advance  grumbling  or  murmuring  and  it  came  like 
a  thutuierbolt   out  of  a  clear  sky.     The  management  thinking  previous  to  this 

228 


» 


■) 


J 


*  ¥    * 


that  everything  was  in  good  order,  and  that  the  employees  or  workers  were 
contented  because  of  the  fact  that  the  scale  paid  in  our  particular  plant  was 
higher  than  our  competitors,  we  were  at  a  loss  to  account  for  the  dissatisfaction. 
They  decided  to  call  a  meeting  of  the  representatives  of  the  employees,  and 
a  number  of  petty  grievances  were  advanced  and  which  could  have  been  adjusted 
had  there  been  some  means  of  doing  so.  The  strike  was  finally  adjusted  after 
three  days'  discussion  and  all  the  employees  returned  to  work. 

"Our  Shop  Grievance  Committee  was  then  inaugurated,  which,  though  not 
a  very  pretentious  affair,  is  suitable  to  our  needs  and  works  along  the  lines 
as  follows : 

Rules  and  Regulations 

(1)  Each  department  shall  have  an  accredited  representative  elected  by  the 
employees  of  his  department. 

(2)  Five  representatives  shall  be  elected  as  an  executive  committee  by  the 
representativs. 

(3)  The  representatives  shall  meet  every  Friday  during  or  after  working 
hours  at  a  place  they  may   select. 

(4)  There  shall  be  two  representatives  of  the  management  vv^ho  shall  meet 
the  executive  committee  in  an  office  room  set  aside  by  the  management  for  the 
purpose  of  discussing  and  adjusting  complaints  or  grievances. 

Rules  for  Submitting  Grievances 

(1)  All  complaints  must  be  in  writing  and  dated.  Same  must  be  submitted 
to  department  representative  in  which  plaintiff  is  working  at  the  close  of  the  day. 

(2)  The  representative  after  receiving  the  complaint  should  try  and  adjust 
it  with  the  foreman  of  his  department.  Should  he  fail  to  do  so  hp  is  then  to 
submit  same  at  the  next  meeting  of  representatives. 

(3)  The  department  representatives  are  to  consider  each  complaint  and 
pass  upon  it,  and  endeavor  to  adjust  same.  Should  they  fail,  the  complaint  is 
then  to  be  placed  in  the  hands  of  the  executive  committee  for  adjustment  at 
their  meeting  with  the  representatives  of  the  management  on  the  following 
Monday  mornisg. 

(4)  Should  the  executive  committee  and  the  management  representatives 
fail  to  agree,  the  matter  will  then  be  referrd  to  the  factory  manager  who  will 
discuss  same  with  a  representative  selected  by  the  executive  committee. 

(5)  Should  no  satisfactory  agreement  be  reached  between  the  factory 
manager  and  the  representative  from  the  executive  committee,  the  complaint 
is  then  to  be  put  before  an  arbitration  committee  whose  finding  shall  be  binding 
and  final  upon  both  sides. 

(6)  The  abitration  committee  shall  consist  of  five  men,  two  selected  by  the 
management,  two  selected  by  the  executive  committee  and  the  fifth  to  be  selected 
and  agreed  upon  by  the  other  four  members  of  the  arbitration  committee. 

"The  above  procedure  has  been  very  successful  in  our  plant  and  to  date 
every  complaint  has  been  satisfactorily  adjusted.  The  scope  of  this  committee 
is  very  wide  and  while  at  times  the  men  advance  a  grievance  which,  after  being 
thoroughly  threshed  out,  is  found  to  be  caused  by  an  individual  who  is  doing 
it  for  his  personal  gain,  the   result  has   been   very  gratifying." 

FROM   A  LARGE  LUMBER  COMPANY. 

"We  have  a  number  of  plants  in  the  South  where  there  are  no  unions  and 
where  we  employ  many  colored  men.  This  labor  is  constantly  shifting  and  it 
would  be  difficult  to  get  any  satisfactory  results  from  such  a  plan.    At  one  plant 

229 


we  have  made  a  start  in  this  direction,  however.  The  matter  is  entirely  in 
the  hands  of  the  employees  and  they  hold  a  fifteen  minute  meeting  during  the 
noon  hour  once  a  week.  One  of  the  employees  is  the  speaker  and  he  gives  a 
talk  on  any  subject  that  he  may  choose,  often  bearing  upon  the  work  in  the 
shop.  Whenever  we  have  any  announcement  to  make  we  take  this  opportunity 
for  doing  so  and  we  find  that  it  has  led  up  to  our  explaining  to  the  employees 
the  reasons  for  certain  changes  or  radical  moves  which  are  made  by  the 
management  and  this  has  resulted  in  more  co-operation  and  less  criticism  than 
in  the  past  when  the  men  were  held  in  ignorance  and  I  believe  this  is  destined 
to  become  a  considerable  advantage  and  after  labor  conditions  become  settled 
and  normal  we  expect  to  introduce  it  in  other  plants." 

A  LARGE  MOTOR  MANUFACTURING  COMPANY. 

"Shop  committees  have  been  tried  out  by  us  with  more  or  less  succesa. 
The  trouble  we  have  found  is  a  lack  of  interest  that  the  men  themselves  take 
in  the  committee  work. 

"At  the  start  of  this  plan,  the  men  appeared  to  take  hold  of  it  with  a 
hearty  good  will  and  take  lots  of  interest  but  gradually  it  dropped  away  and 
we  have  been  unable  to  keep  up  interest,  so  that  for  the  present  in  our  assembly 
plants  we  are  not  doing  anything  in  regard  to  shop  committees.  The  idea,  we 
think,  is  fine  if  there  would  be  some  way  that  we  could  keep  the  interest  of 
the  men  on  the  committees,  which  we  have  been  unable  to  do  so  far. 

"It  seems  impossible  to  keep  the  men  interested  in  these  committees,  as  it 
does  not  seem  to  be  of  any  benefit  to  them,  or  at  least  it  is  hard  to  show  them 
where  they  are  benefitted  by  this,  and  the  work  of  the  committee  gradually 
drops  away  until  they  are  of  no  use  to  themselves  or  to  the  factory." 


Personal  Opinions,  Favorable 


BOSS   ELECTRICAL   SUPPLY   CO.,   Providence. 

"I  personally  think  that  the  committee  plan,  so  far  as  it  has  been  developed, 
is  the  best  means  for  the  elimination  of  strikes  and  other  troubles,  and  should 
be  adopted  and  used  by  all  organizations  until  something  better  is  invented 
to  replace  same." 

COVERT  GEAR  COMPANY,  INC.,  Lockport,  N.  Y. 

"I  have  made  a  careful  study  of  it  in  the  past  and  I  realize  that  sooner 
or  later  we  must  all  face  it,  and  if  it  is  taken  up  freely  I  know  it  will  work 
out  to  the  advantage  of  all  concerned. 

"The  shop  committee  plan  is  not  fully  established  here  yet,  but  we  are 
on  the  road  to  its  completion. 

"My  personal  view  of  it  is  that  it  will  be  a  fine  thing  when  every  factory 
has  it,  and  in  the  factories  where  I  have  come  in  contact  with  it,  I  can  say 
that  I  found  it  entirely  satisfactory  and  that  it  has  no  doubt  saved  a  great 
deal  of  lost  time  in  bringing  the  men  in  closer  touch  with  the  management, 
and   in  averting  strikes  that  otherwise  would  have  taken  place. 

"It  has  also  cut  down  the  absentee  list  and  cut  down  the  percentage  of 
lost  time  caused  by  employees  being  late."— C.  H.  Skinner,  Employment  Mgr. 

230 


f    , 


A 


) 


•^ 


WM.  E.  DUNHAM,  Efficiency  Engineer,  Pittsburgh,  Pa. 

"I  have  given  the  matter  considerable  thought  in  the  last  few  years  and 
heartily  approve  of  it  if  properly  handled.  I  am  inclined  to  believe  that  the 
committee  composed  of  both  the  management  and  the  employees  is  not  the 
ideal  form,  since  the  employees  invariably  feel  that  they  are  being  spied  upon 
and  coerced  through  the  management's  representative. 

"It  would  seem  to  me  that  the  better  scheme  would  be  to  have  each  depart- 
ment or  class  of  workers  appoint  a  representative  committee  to  confer  with 
the  management,  the  latter  to  be  represented  in  whatever  form  the  manage- 
ment deems  it  advisable.  I  think  the  jurisdictions  of  these  committees  should 
be  to  make  recommendations;  the  final  decision  being  reached  in  conference 
with  the  management. 

"One  feature  of  the  War  Labor  Board's  accepted  practice  in  connection 
with  these  shop  committees  is  to  have  the  committees  appointed  at  a  meeting 
of  the  employees  called  at  some  public  place  outside  the  plant.  This,  I  feel, 
is  liable  to  develop  a  spirit  of  antagonism  between  the  employer  and  employee. 
The  relation  between  capital  and  labor  must  certainly  be  coming  to  a  strained 
point  when  employees  cannot  hold  a  meeting  of  this  kind  on  the  premises  of 
the  employer,  and  appoint  their  committees  with  perfect  confidence  that  they 
are  doing  so  with  the  co-operation  and  consent  of  the  employer.  I  believe  the 
whole  principle  behind  the  shop  committee  idea  is  to  get  a  greater  degree  of 
co-operation,  and  think  this  principle  should  be  kept  in  mind  at  all  times  in 
working  out  the  details  of  shop  committees." 

EASTERN  MANUFACTURING  COMPANY,  Bangor,  Maine. 

"We  believe  that  eventually  either  a  committee  plan  of  shop  management 
or  some  other  co-operative  plan  based  on  the  same  general  principles  is  bound 
to  come  and  that  when  properly  established  it  will  be  an  excellent  plan  of 
management.  We  feel,  however,  that,  at  least  in  our  own  shop,  conditions  are 
not  yet  ripe  for  such  a  movement. 

"We  also  feel  very  strongly  that  it  is  a  great  mistake  to  jump  into  the 
shop  committee  plan  unless  the  employees  and  the  management  are  both  fairly 
well  educated  along  these  lines  so  that  the  plan  will  not  fail.  A  failure  on 
the  part  of  either  the  management  or  the  employees  will,  we  believe,  lead  to 
industrial  unrest  which  would  probably  be  more  serious  than  would  have  been 
the  case  had  such  a  scheme  not  been  tried  in  the  first  place. 

"We  believe  that  we  are  gradually  educating  both  our  employees  and  our 
executives  and  foremen  to  the  point  where  eventually  the  shop  committee  plan 
will  be  practicable  in  our  own  plant,  but  do  not  expect  any  such  thing  in  the 
near  future  and  would  regret  exceedingly  any  action  on  the  part  of  the  Govern- 
ment which  would  force  us  into  such  a  form  of  co-operative  management  before 
we  are  really  ready  for  it. 

"At  the  present  time  we  are  experimenting  with  a  system  of  group  meet- 
ings. These  group  meetings  have  only  been  carried  on  for  a  few  weeks  but 
we  are  in  hopes  that  they  may  prove  a  step  toward  the  ideal  of  co-operative 
management." 

NOVELTY  CANDY  COMPANY,  Chicago,  111. 

"I  am  of  the  opinion  that  the  establishment  of  shop  committees  is  a  valuable 
addition  to  any  organization,  especially  when  working  with  skilled  or  organized 
labor." — Benjamin  Schneewind,  President. 

231 


OHIO  LOCOMOTIVE  CRANE  CO,  Bucyrus,  Ohio. 

"I  believe  that  if  a  good  shop  committee  was  selected,  irrespective  of 
whether  the  employees  of  same  belonged  to  a  union  or  not,  that  it  would  prove 
beneficial  to  both  the  employer  and  employee. 

*'We  employ  both  union  and  non-union  employees.  We  show  no  partiality 
nor  discrimination  against  either  kind  of  employees.  A  week  ago  last  Satur- 
day, the  writer  called  into  the  office  one  of  the  leaders  of  the  machinists'  union, 
and  a  non-union  employee,  and  told  them  that  we  thought  it  would  be  beneficial 
to  all  mutual  interests  to  establish  a  shop  committee,  relating  briefly  what  good 
could  be  accomplished  by  such  a  committee.  I  told  them  that  we  proposed 
holding  an  election  out  in  the  shop,  allowing  each  and  every  employee  to  vote 
for  two  men  to  represent  them  on  a  shop  committee.  The  management  would 
then  select  two  other  men  to  represent  the  company  and  these  four  men  so 
selected  cou!d  appoint  the  fifth  man,  or  arbitrator.  About  one-fourth  of  our 
men  are  union  men  and  the  rest  of  them  non-union  men.  I  told  them  that 
in  case  the  men  elected  two  non-union  men  I  would  appoint  two  union  men  to 
represent  the  company,  and  vice  versa,  should  the  men  elect  two  union  men,  I, 
on  behalf  of  the  company,  would  appoint  two  non-union  men,  so  that  the  com- 
mittee would  be  equally  divided  in  that  respect,  and  so  that  neither  side  could 
find  any  fault  with  such  an  arrangement. 

"Our  men  seemed  to  be  very  well  pleased  with  such  an  arrangement,  and 
which  arrangement  we  expect  to  put  into  operation  some  day  this  week. 

'The  writer  is  also  indirectly  connected  with  another  large  concern  here 
(The  Carroll  Foundry  &  Machine  Co.)  where  a  shop  committee  was  appointed 
last  week  along  the  lines  above  indicated." — C.  F.  Michael. 

THE  ROBERT  MITCHELL  COMPANY,  Limited,  Montreal,  Quebec. 

"The  Shop  Committee  Plan  possesses  a  great  deal  of  interest  for  us,  and 
during  the  past  year  we  have  been  studying  instances  of  its  application  with 
a  view  to  adopting  it  in  our  factory.  Up  to  the  present  time,  however,  we  have 
not  put  this  plan  into  force. 

"We  are  thoroughly  in  sympathy  with  the  idea  that  the  employees  of  an 
industrial  concern  should  have  some  recognized  means  of  expressing  their 
opinions  on  subjects  affecting  both  themselves  and  their  employers. 

"We  have  recently  assisted  our  employees  in  forming  a  Mutual  Benefit  Asso- 
ciation, which  is  working  very  satisfactorily;  and  we  are  at  present  endeavoring 
to  form  a  Co-operative  Buying  Society  for  the  purchase  of  staple  foodstuffs 
at  wholesale,  for  the  employees. 

"Although  neither  of  the  above  associations  is  formed  with  a  view  to 
performing  the  functions  of  shop  committees,  still,  we  think,  that  the  experience 
gained  by  our  employees  in  managing  these  associations,  will,  in  the  course  of 
time,  make  it  possible  for  us  effectively  to  work  in  a  Shop  Committee  Plan." 

WASHBURN  CROSBY  CO..  Minneapolis,  Minn. 

"The  matter  of  a  shop  committee,  or  employees'  council,  has  been  seriously 
considered  the  past  few  months,  and  we  believe  that  something  of  this  order 
will  be  adopted  in  the  near  future.  The  writer  is  very  strongly  in  favor  of 
such  a  plan  and  believes  that  concerns  who  employ  a  large  number  of  men  will 
find  it  advisable  to  have  something  on  the  co-operative  plan  in  the  future." — 
W.    H.    BOVEY. 

232 


♦ 


) 


M    I 


WALWORTH  MANUFACTURING  COMPANY,  Boston,  Mass. 

"We  are  very  much  interested  in  shop  committees  or  any  other  plan  to 
bring  about  closer  relations  between  the  management  of  this  company  and 
our  operatives. 

"This  matter  has  received  our  careful  attention  for  a  long  time,  but,  due 
to  the  fact  that  we  are  operating  an  open  shop  and  have  a  great  many  different 
trades  represented,  we  have  been  unable  to  satisfy  ourselves  as  to  the  best  way 
to  form  a  shop  committee  or  shop  committees. 

"We  are  now  working  on  the  publication  of  a  shop  paper,  and  that  the 
men  may  have  an  interest  in  publishing  it,  we  have  appointed  representatives 
of  the  men  from  eight  or  ten  of  our  different  shops  to  consult  with  us  in  regard 
to  it.  This  is  the  nearest  that  we  have  come  to  the  formation  of  any  committee 
of  our  workmen,  and,  as  you  can  readily  see  is  quite  a  different  proposition 
from  our  understanding  of  shop  committees  as  constituted  in  a  number  of 
manufacturing  plants." 

FROM  THE  EXPLOYMENT  MANAGER  OF  A  GUMMED  AND  COATED 
PAPER  MANUFACTURING  COMPANY. 

'T  entirely  believe  in  the  principle  of  collective  bargaining  between  employer 
and  employee,  having  been  a  member  of  one  of  the  large  international  unions 
for  eighteen  years.  I  do  not,  however,  believe  that  it  is  advisable,  either  in  the 
interests  of  the  manufacturer  or  the  employee,  to  urge  employees  to  become 
members  of  a  trade  or  labor  union.  It  is  my  opinion  that  better  relations  may 
be  had  in  any  plant  or  in  any  industry  between  management  and  the  workers 
where  intelligently  organized  shop  committees  exist.  In  fact,  I  know  of  no 
other  method  whereby  employers  may  be  reasonably  sure  of  uninterrupted 
production  except  by  this  method,  and  unless  men  are  employed  in  small  groups, 
I  know  of  no  other  way  that  they  can  secure  fair  adjustments  of  grievances 
or  questions  that  arise  in  the  course  of  employment." 

FROM  A  LARGE  MANUFACTURING  COMPANY. 

"We  recognized  the  fact  that  we  must  have  a  shop  committee  of  some  sort. 
We  have  always  had  a  foremen's  club  meeting  every  two  weeks  and  in  a  way 
shaping  the  general  policies  of  our  shop  management,  but  we  have  not  as  yet 
made  any  move  which  will  create  a  representative  body  in  which  the  man  in 
the  shop  has  a  vote.  We  are  on  the  way  to  this,  however,  and  while  we  are 
moving  slowly,  we  are  making  sure  of  our  ground  as  we  step  along. 

"We  have  in  view  the  calling  of  a  weekly  meeting  of  all  new  employees. 
At  this  meeting  we  will  tell  those  employees  just  what  sort  of  a  company  they 
are  working  for,  how  important  our  work  is  in  the  winning  of  the  war  and 
sell  them  on  the  idea  of  a  permanent  job.  We  have  tried  this  out,  but  we  have 
not  tried  it  out  long  enough  to  be  able  to  give  you  any  real  information  on 
what  has  happened,  although  in  our  own  minds  we  are  well  satisfied  with  the 
progress." 

FROM  A  CHAIR  MANUFACTURER. 

"Theoretically  we  believe  in  the  shop  committees,  but  inasmuch  as  our 
business  is  so  small  and  we  are  in  such  close  touch  with  the  men  and  women 
in  our  employ  we  doubt  whether  there  is  as  much  need  of  it  as  would  be  the 
case  in  larger  units. 

233 


"We  presume  that  some  day  we  shall  be  ready  to  go  forward  with  this 
sort  of  thing,  but  just  at  present  somehow  we  do  not  seem  to  feel  the  courage 
of  our  fairly  well  established  conviction." 

A  LARGE  ENVELOPE  COMPANY. 

"A  personal  acquaintanceship  with  our  employees  obviates  the  necessity 
for  collective  agreement  through  any  system  of  shop  committees.  We  can 
readily  appreciate,  however,  that  a  system  based  on  shop  committees  might 
prove  very  valuable  in  industrial  establishments  where  labor  is  employed  on 
such  a  large  scale  that  a  'personal  touch*  becomes  an  impossibility." 


Unfavorable  Opinions  From  Firms  That  Have  No 

Committees 


LINK  BELT  CO.,  Philadelphia,  Pa. 

"The  policy  of  our  company  has  always  been  to  encourage  close  personal 
contact  between  the  employees  and  the  management,  so  that  if  any  employee 
has  any  grievance  he  can  at  any  time  feel  at  liberty  to  present  it  personally 
to  his  superintendent,  or  to  the  plant  manager.  We  believe  this  establishes  a 
better  working  relation  than  where  the  employee  has  to  reach  the  management 
through  a  committee,  and  our  experience  at  our  several  plants  has  confirmed 
us  m  this  belief. 

"Collective  bargaining,  of  which  we  hear  so  much  nowadays,  has  been  given 
as  one  of  the  prime  reasons  for  the  existence  of  shop  committees.  This  form 
of  bargaining  is  all  right  with  a  large  number  of  employees  rendering  sub- 
stantially equivalent  service,  such  as  locomotive  engineers,  street  railway  motor- 
men,  conductors,  etc.,  but  in  an  industry  like  ours  there  are  very  few  employees 
who  render  equivalent  service  and  our  whole  scheme  of  compensation  is  based 
upon  paying  each  employee  in  accordance  with  the  service  rendered,  so  that 
no  necessity  exists  for  collective  bargaining." — Staunton  B.  Peck,  Acting 
President. 

A.  T.  SIAIONDS  MANUFACTURING  COMPANY,  Fitchburg,  Mass. 

"In  regard  to  shop  committees,  I  am  very  doubtful  as  to  whether  they 
will  survive  ordinary  times,  although  they  may  be  expedient  during  the  present 
etxraordinary  situation.  I  am  positively  against  any  system  which  makes  it 
difficult  or  impossible  to  discharge  an  employee  whether  a  member  of  a  union 
or  not,  or  to  regulate  the  production  of  the  more  skilled  men  down  to  the 
lowest  of  the  least  skilled." — A.  T.  Simonds,  President. 

FROM  A  LARGE  RUBBER  GOODS  MANUFACTURING  COMPANY. 

"We  are  not  convinced  that  we  could  derive  very  much  benefit  from  such 
a  plan.  In  the  first  place,  I  need  not  remind  you  of  the  far-reaching  effect 
were  we  to  recognize  this  suggestion  and  comply  with  it  entirely.  My  personal 
opinion  is  that  I  consider  it  a  master  stroke  and  without  further  explanation  I 
think  you  see  the  intent." 

234 


r 


♦ 


A 


; 


I 


FROM  A  LARGE  AUTOMOBILE  TIRE  COMPANY. 

"We  can  do  more  for  our  employees  if  we  are  not  hampered  with  'shop 
committees'  and  so  far  have  always  been  able  to  do  so." 

FROM  THE  VICE-PRESIDENT  OF  A  LARGE  MOTOR  CAR  COMPANY. 

"I  have  not  seen  enough  of  this  movement  to  form  a  decided  opinion, 
but  from  observation  in  two  or  three  shops  where  it  was  carried  out,  I  do  not 
think  it  is  in  the  direction  of  the  greatest  efficiency. 

"However,  I  have  so  little  knowledge  of  the  matter  that  I  am  not  in  k 
position  to  express  an  opinion.     I  view  the  situation  largely  in  this  light : 

"Suppose  General  Pershing  decided  to  make  a  move  on  the  Western 
Front,  and  should  call  a  meeting  of  the  representatives  of  the  soldiers  in  order  to 
find  out  whether  they  wanted  to  do  it  or  not.  It  seems  to  me  it  would  be 
exceedingly  difficult  to  weld  together  the  variety  of  ideas,  as  to  what  should 
be  done,  so  that  much  effort  would  be  spent  in  this  direction  of  more  or  less 
non-essential  things." 

FROM  A  BAG  MANUFACTURING  COMPANY. 

"The  work  in  our  various  factories  has  always  been  carried  on  largely  by 
female  help,  they  comprising  about  80  per  cent,  of  our  force,  and  would,  in 
general,  be  called  semi-skilled.  We  have  not  considered  that  any  great  amount 
of  benefit  could  be  derived  from  committees  composed  of  these  employees.  We 
do  not  find  that  we  can  procure  employees  from  other  lines  of  industry  who 
bring  with  them  any  experience  or  helpful  suggestions.  Our  work  is  such  that 
it  requires  our  teaching  each  new  employee  from  the  ground  up." 

FROM  A  MANUFACTURER  OF  COTTON  FABRICS. 

"I  have  not  convinced  myself  that  with  the  class  of  labor  we  employ  (con- 
sisting of  twenty  odd  different  races  and  creeds,  largely  from  central  Europe — 
many  of  them  not  speaking  English)  the  introduction  of  such  shop  committees 
are  a  good  thing  for  our  particular  industry,  or  that  they  would  be  any  better 
in  establishing  good  relationships  than  the  method  now  pursued  through  our 
Labor  and  Service  Department,  under  the  general  charge  of  our  factory  man- 
ager. Being  a  quarter  Irish,  I  am  afraid  I  rather  favor  direct  action,  and  agree 
with  a  certain  celebrated  Washington  authority  that  Committees,  Uke  boards, 
are  usually  long,  narrow  and  wooden. 

"No  one  would  welcome  more  heartily  than  I  a  practical  scheme  of  indus- 
trial democratization,  for  it  would  certainly  relieve  the  management  of  many 
of  their  present  duties  and  trouble,  but  to  be  successful,  it  would  mean  that  the 
workers  would  have  to  pick  their  leaders  more  wisely  than  they  -.'c  choosing 
their  representatives  today — and  that  would  mean  very  considers  .>ie  education 
of  the  working  man  as  a  preliminary." 

FROM  A  LARGE  CASH  REGISTER  MANUFACTURING  COMPANY. 

"We  do  not  recognize  any  labor  organization,  ours  being  an  'open  shop.* 
Our  past  experience  has  taught  us  that  the  ordinary  shop  committee  does  not 
necessarily  promote  good  relations  between  the  men  and  management,  and  wc 
think  we  have  found  a  better  way  to  maintain  harmony  and  co-operation 
between  the  men  and  the  company." 

235 


FROM  A  LARGE  AUTOMOBILE  FACTORY. 

"There  is  no  committee  plan  in  operation  in  our  factories. 

"From  what  we  have  been  able  to  learn  we  feel  there  is  no  necessity  for 
adopting  the  shop  committee  and  in  this  particular  locality  believe  it  would  be 
unadvisable  to  do  so." 

FROM  A  LARGE  MANUFACTURER  OF  VALVES  AND  PIPE  FITTINGS. 


"At    the 


works    in    sixty-three    years    we    have    had    one    strike, 


m  1893.  due  to  the  extremely  depressed  conditions  at  that  time,  and  in  1915,  at 
the  Bridgeport  plant  we  had  a  peaceful  walk  out,  brought  about  by  the  general 
unrest  there  arising  from  a  deficiency  of  labor  and  high  wages  offered  by  the 
munition  plants.  The  men  came  back  to  us  in  three  or  four  weeks  without  any 
change  in  wages  or  hours. 

"With  this  experience,  we  are  willing  to  let  well  enough  alone  and  would 
rather  not  experiment  with  a  shop  committee  of  employees." 

FROM  THE  CHIEF  ENGINEER  OF  A  MACHINE  MANUFACTURING 
COMPANY. 

"I  believe  it  is  a  good  war  measure  and  should  be  given  a  fair  tryout. 

"I  don't  believe  it  will  do  very  much  good  nor  will  it  do  much  harm,  but 
it  will  give  the  workers  a  chance  to  express  their  ideas  as  to  hew  a  factory 
should  be  managed  to  conform  with  their  ideas.  It  will  also  satisfy  a  portion 
of  the  force  which  is  at  heart  Bolsheviki. 

"It  may  also  help  in  keeping  out  outside  prefessional  agitation  and  any- 
thing that  will  counteract  that  kind  of  a  force  is  worth  trying. 

"The  committee  will  not  do  much  harm  because  after  the  first  outburst 
of  enthusiasm  has  worked  off  its  steam,  the  committee  will  be  indifferent,  as  all 
committees  are,  and  like  putty  in  the  hands  of  a  clever  leader.  Then  it  is  up 
to  you  to  lead  the  leader — in  other  words,  see  that  he  realizes  what  the  business 
is  for  and  what  is  best  for  it." 

FROM  THE  PRESIDENT  OF  A  MANUFACTURING  CONCERN. 

"As  regards  committee  management,  we  have  recently  been  trying  it  out  to 
a  very  limited  extent.  We  have  a  Production  Committee  which  includes  the 
head  of  our  Production  Department  and  his  assistant,  our  factory  superin- 
tendent, and  the  head  of  the  inspection  and  shipping  department. 

"Am  sorry  to  say  that  at  present  I  could  not  give  my  unqualified  endorse- 
ment to  the  committee  plan,  as  having  anything  to  do  with  wage  schedules." 

"As  to  working  conditions,  as  far  as  they  relate  to  sanitary  and  hygienic 
conditions,  etc.,  I  believe  it  would  be  a  success,  and  we  hope  to  establish  such 
a  committee  here. 

"Also  we  have  one  in  mind  to  look  after  such  social  activities  as  we  may 
have,  for  which  our  facilities  are  quite  limited  anyway. 

"Beyond  this,  while  I  thoroughly  agree  with  the  committee  idea  in  theory, 
it  doesn't  seem  wise  in  this  plant  under  present  industrial  conditions. 

"When  we  find  our  employes  as  loyal  to  the  Government  and  our  own 
interests  as  we  think  they  should  be,  and  as  we  are  trying  to  be  to  them,  and 
this  loyalty  will  be  evidenced  by  regularity  of  attendance  and  increase  instead 

236 


V 


» 


of  decrease  of  production,  and  they  are  not  ready  at  the  drop  of  the  hat  to 
leave  for  another  plant  where  they  can  get  (possible)  increase  in  pay,  I  should 
feel  we  could  trust  them  to  assist  us  in  determining  wage  scales,  etc. 

"I  don't  like  to  feel  as  I  do  about  the  present  attitude  of  our  employees, 
but  their  own  action  forces  me  to  it.  If  their  attitude  could  be  changed  by 
introducing  a  committee  plan  of  management,  I  would  be  the  first  one  to  adopt 
it,  but  I  feel  now  I  should  hardly  dare  undertake  so  radical  a  change." 


X 


!•      ^ 


I 


.^ 


*r 


237 


Appendix  VI 


LOST  TIME  IN  MUNITIONS  FACTORIES 
"A  New  Way  of  Dealing  with  Offenders." 

(Reprinted     from     the     London     Chronicle.      Pamphlet 

Washington,  j 


in     Department     of     Labor     Library, 


Seven  workmen  are  seated  round  a  table  in  a  dark  room.  They  are  washed 
and  brushed,  after  their  day's  work.  The  electric  lamp  over  the  table,  its  bright 
wire  hidden  by  a  long  shade  like  a  fool's-cap.  shines  dimly  upon  papers  and  books 
and  inkpots.  The  rest  of  the  long  room  is  in  shadow.  These  seven  workmen 
constitute  the  Coventry  Local  Labor  Advisory  Board.  Brought  into  adminis- 
trative existence  for  one  purpose,  they  have  achieved  another,  which  is  like  a 
revolution.  It  is  my  hope  that  when  peace  returns  to  the  earth  these  seven 
workmen  may  be  acclaimed  as  the  initiators  of  a  great  social  reform. 

"Call  Mr.  Dash,"  says  the  chairman,  examining  his  papers.  The  chairman  is 
a  short,  plump,  high-shouldered  man,  with  a  very  menacing  directness  of  eye 
and  a  husky  voice,  extraordinarily  swift  in  its  utterance. 

The  other  workmen  read  a  report  from  the  employers  of  Mr  Dash  One 
shakes  his  head  over  it.  Another,  sharpening  his  pencil,  remarks  that  it's  a  bad 
case.  The  secretary  says,  "There's  worse  to  come."  A  door  opens.  We  hear 
a  shufflmg  sound  from  the  end  of  the  room,  and  out  of  the  shadows  a  young 
man  makes  his  appearance,  cap  in  hand,  the  collar  of  his  overcoat  half-turned 
up.  This  diffident  young  man  approaches  the  table,  like  a  ghost  or  like  the 
victim  of  a  mesmerist. 

Time-Loser's  Excuse 

"Good  evening,  Mr.  Dash,"  says  the  chairman  cheerfullv.  "Take  a  seat 
We  won't  keep  you  many  minutes."  And  as  soon  as  Mr.  Dash  has  taken  a  seat 
at  the  end  of  the  table,  the  chairman,  holding  the  papers  in  his  hands,  and  fixing 
his  accusing  eyes  upon  the  offender,  proceeds  as  follows :  "Mr.  Dash,  you  are 
reported  to  us  by  your  employers  for  losing  five  hours  last  week,  four  hours 
the  week  before,  and  five  and  a  half  hours  the  week  before  that.  We  are 
going  to  ask  you  why  you  lost  this  time. 

"But,  before  putting  that  question,  I  wish  to  explain  to  you  that  we  are  all 
workmen  the  same  as  yourself,  that  we  don't  represent  your  employers  that 
we  are  not  here  in  the  interests  of  your  employers,  and  that  our  only  business 
IS  to  see  that  the  chaps  at  the  front  get  enough  stuff  to  beat  the  Germans 
You'll  understand,  please,  that  in  speaking  to  us  you  can  speak  freely.  We've 
no  wish  to  send  you  before  the  Tribunal.  We  want  to  keep  all  the  skilled 
workmen  we've  got.  Our  one  object  is  to  see  that  the  factories  of  Coventry 
turn  out  all  the  stuff  they  can,  in  order  to  win  the  war.  Now,  Mr.  Dash,  will 
you  be  so  good  as  to  explain  to  us  how  you  have  managed  to  lose  this  time?" 

Mr.  Dash  explains.  He  is  a  gentlemanly,  delicate  young  man,  and  begins- 
•Mr.  Chairman  and  Gentlemen."  His  voice  is  low  and  sorrowful.  His  excuse 
is  a  domestic  excuse,  and  one  that  touches  the  heart.  He  advances  it  modestly 
and  pathetically.  This  young  man  has  to  get  breakfast  for  his  wife  and  to 
wash  and  dress  his  children,  before  he  goes  to  work.  Surely  he  has  a  valid 
excuse   for  those  lost  hours. 

238 


^) 


r, 


Putting   It   Straight 

But  the  seven  workmen,  after  listening  quietly,  and  after  the  chairman  has 
expressed  a  brief,  businesslike  sympathy,  suddenly  began  to  fire  off  questions, 
one  after  another,  like  bullets  from  a  rifle. 

"You  can  get  out  of  bed  half  jin  hour  earlier,  can't  you?"  says  the  chairman. 

"Yes." 

"Think  of  the  girls  who  live  outside  the  town  and  get  up  at  4  o'clock  or 
5  o'clock  in  order  to  be  at  the  factory  in  proper  time." 
Mr.  Dash  nods  his  head. 
"If  you  were  in  the  trenches  you'd  get  up  when  you  were  told,  wouldn't  you?" 

"Yes." 

"You'd  jolly  well  have  to." 

Mr.  Dash  acquiesces. 

"There'd  be  no  loitering  for  you  out  there,  would  there?  No;  you  bet 
your  life !  And,  Mr.  Dash,  let  me  tell  you  this :  Many  a  man  in  those  trenches, 
facing  death  every  minute  of  his  life,  has  a  delicate  wife  and  young  children 
in  England.  Aye,  and  he's  worrying  about  them.  They're  in  his  thoughts  night 
and  day.  Why  are  not  you  out  there?  Just  because  you've  got  a  trade  in 
your  fingers.  And  if  you  don't  do  your  best  at  the  trade,  Mr.  Dash,  what  will 
your  conscience  say  to  you?     Put  it  to  your  conscience. 

"Come,  you're  a  man  of  honor.  Give  us  your  word,  pledge  your  word  to 
us,  Mr.  Dash,  that  you'll  lose  no  more  time.  Remember  this:  those  men  out 
in  the  trenches  are  fighting  for  your  wife  and  children;  they  are  not  fighting 
for  your  employers;  they  aren't  fighting  for  the  capitalist;  they're  fighting  for 
you,  for  your  wife,  and  for  your  little  ones.  Aye,  that's  a  fact.  Come,  you'll 
give  us  your  word.  You'll  get  up  half  an  hour  earlier,  won't  you?  It  isn't 
much  to  ask  of  you,  is  it?  It  doesn't  compare  with  what  the  chaps  out  there 
are  doing  for  you,  does  it?     Well,  your  hand  on  it,  Mr.  Dash." 

Mr.  Dash  shakes  hands,  gives  his  solemn  word  he'll  lose  no  more  time 
(there  is  a  real  ring  in  his  voice)  and  goes  out  of  the  room  with  his  head 
down,  and  moisture  in  his  eyes. 

Dramatic  Cross-Examination 

The  next  case  is  that  of  a  youth,  who  comes  into  the  room  with  a  certain 
betrayal  of  nervousness,  but  is  soon  perfectly  at  his  ease,  looking  around  at 
the  seven  workmen  with  an  expression  of  rather  contemptuous  amusement. 

This  young  man  is  reported  for  losing  time  and  also  for  insolence  to  his 
foreman.  He  is  not  in  the  least  ashamed.  He  faces  his  judges  with  a  cool 
detachment.  He  smiles  as  the  charge  is  read  over  to  him,  motionless  on  his 
chair  at  the  end  of  the  table.  His  excuse  is  that  he  is  not  satisfied  with  his 
conditions.  He  is  asked  whether  he  is  a  member  of  a  Union?  Yes.  Has  he 
reported  his  complaints  to  his  Union?     No. 

"Why  not?  It  was  your  duty  to  report  your  complaints.  The  secretary 
of  your  society  is  here  at  this  table.  What  excuse  have  you  got?"  The  boy 
shifts  in  his  seat,  his  eyelids  blinking,  his  tongue  moistening  his  lips.  The 
secretary  suddenly  asks,  "How  long  have  you  been  with  Messrs.  So-and-So?" 
"Four  weeks."  "And  you  left  your  last  employers  on  such  a  date?"  "Yes." 
"Then  you  were  walking  about  for  three  weeks  doing  nothing  at  all?"  "I  was 
looking  for  a  job."    "Did  you  go  to  the  Labor  Exchange?"    "No."    "Why  not?" 

Then  comes  with  dramatic  suddenness  an  appeal  to  the  defendant's  moral 
judgment,  to  his  honor,  to  his  conscience.  He  is  astonished.  His  eyes  go  from 
one  to  another  of  his  judges.     They  are  wage-earning  workmen,  like  himself; 

239 


and  they  are  speaking  of  honor,  speaking  of  conscience.  More  than  this :  They 
are  speaking  of  his  mates  in  the  trenches,  of  mud  up  to  the  knees,  of  bitter 
cold,  of  drenching  rain,  of  shells  which  never  cease  to  fall,  night  and  day. 
"Those  shells  were  falling  while  you  were  walking  about  with  your  hands  in 
your  pockets." 

He  is  beaten.  You  see  something  hke  fear  in  his  eyes.  Then  he  jumps 
up.  He  can  stand  it  no  longer.  "I'll  give  you  my  word,"  he  says.  "Your  hand 
on  that."  He  takes  the  hand  offered  to  him.  "Mind !  your  word  is  your  bond." 
"Yes."  "You'll  do  your  best,  lad?"  "Yes."  "Well,  good  luck  to  you.  We  know 
you'll  keep  your  word." 

Five  Pounds  a  Week  Grievance 
The  next  case  is  the  worst  of  all.  There  is  a  deal  of  discussion  ajnong 
the  Board.  On  the  evidence  before  them  this  man  ought  to  go  before  the 
Tribunal.  He's  a  clever  workman,  but  he  comes  when  he  likes,  goes  when  he 
Hkes.  His  foreman  can  do  nothing  with  him.  His  employers  report  that  they 
consider  him  hopeless.  The  chairman  looks  up  from  his  paper,  shaking  his 
head.     "Well,  we  must  see  him." 

"Call  Mr.  Blank,"  says  the  secretary. 

He  is  invited  to  sit  down,  and,  sitting  down,  he  looks  steadily  at  the  chair- 
man, an  angry  gleam  in  his  eyes.  Again  and  again,  while  the  chairman  explains 
the  office  of  the  Board,  he  nods  his  head,  and  makes  a  curious  forward  move- 
ment with  his  right  hand,  as  if  to  say:  "I  understand  all  this;  don't  waste 
your  breath";  but  he  utters  no  sound.  And  when  the  chairman  has  finished 
his  formidable  indictment,  concluding  with  the  words,  "What  have  you  to  say 
for  yourself,  Mr.  Blank?"  the  young  man,  moistening  his  lips,  says  hoarsely: 
"This:  H  a  man  was  to  say  to  you— now  I'm  speaking  the  truth,  mind  you— 
if  a  man  was  to  say  to  you,  'Get  on  with  this  job  and  there'll  be  an  extra  five 
bob  on  it  at  the  end  of  the  week' ;  and  if  when  the  end  of  the  week  comes,  see, 
and  you  gets  your  money,  instead  of  five  pun  sevingteen  and  six  it's  only  five 
pun  three— well,  what  'ud  your  feelings  be?"  He  sits  back  in  his  chair,  breath- 
ing hard,  his  head  going  from  side  to  side.  "D'  you  think  a  man— a  man— will 
put  with  that?     Not  likely!" 

Searching  Questions 

You  should  have  heard  the  seven  workmen  of  Coventry!  Had  he  reported 
his  unfulfilled  promise  of  a  foreman  to  his  Union?  No,  he  had  not.  "Why 
not,  then?  why  not,  Mr.  Blank?"  Then  a  casual  aside:  "By  the  way,  are 
you  still  a  member  of  your  society?"  "No."  "Why  not?"  An  awkward  ques- 
tion.   "You've  been  earning  good  money,  but  you  havn't  paid  your  subscriptions." 

"Let  me  tell  you  this,  Mr.  Blank,"  says  the  chairman:  "I'm  a  workman 
like  yourself,  and  a  skilled  workman,  and  I've  got  a  wife  and  six  children,  and 
never  since  this  war  started  have  I  topped  fifty  shillings  a  week.  Never  topped 
it?  Why,  I've  never  seen  fifty  shillings  a  week.  Listen  to  me;  you,  an  un- 
married man,  earning  over  five  pounds  a  week,  have  been  losing  days  at  your 
work,  week  after  week,  while  better  men  than  you,  men  with  wives  and  families, 
have  been  fighting  and  dying  out  in  France." 

"Mr.  Chairman,"  breaks  in  the  representative  of  the  Ministry  of  Munitions, 
"I  object  to  wasting  time  over  this  man.     It's  a  clear  case  for  the  Tribunal." 

"Wait  a  moment,"  says  the  chairman.  Then  turning  to  Mr.  Blank,  he  says: 
"The  only  reason  you  aren't  out  in  the  trenches  is  this— you've  got  a  trade  in 
your  fingers.     You've  got  a  trade.     It  earns  you  good  money.     And  you  can 

240 


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I 


i'i  ■) 


I 


i 


^v 


V  '-^ 


sleep  in  a  comfortable  bed,  get  what  food  you  want,  work  in  the  dry,  and 
enjoy  yourself  how  you  will  in  your  leisure.  And,  Mr.  Blank,  with  all  these 
advantages  and  benefits,  you're  holding  back  the  stuff  from  your  own  brothers 
out  in  the  trenches !" 

Another  breaks  in.  "Listen,  Mr.  Blank !  Last  week,  as  we  sat  here,  with  a 
case  before  us  very  like  yours,  a  telegram  was  brought  to  me.  That  telegram 
contained  the  news  of  my  brother's  death  in  France — shot  through  the  brain. 
He  left  a  wife  and  five  little  kiddies.  They'll  never  see  him  again.  They'll 
never  know  prosperity  again.  His  wife  is  a  widow ;  his  children  will  call  for 
their  daddy  in  vain ;  life  as  they've  known  it  is  finished  for  them ;  it'd  done ; 
and" — lowering  his  voice  to  near  a  whisper — "and  you,  Mr.*  Blank,  you  may 
be  the  cause  of  my  brother's  death." 

Coventry  Leads  the  Way 

Well,  this  case  ends  like  the  rest.  The  workman  surrenders.  It  ends,  too, 
as  five  other  cases  ended  that  night,  in  something  very  near  tears. 

Now,  this  Coventry  scheme  has  been  tried  for  some  time.  I  was  given 
..  bundles  of  reports  from  various  employers  concerning  men  who  had  once 
appeared  before  the  board.  In  an  overwhelming  majority  the  reports  ran,  "No 
further  time  lost."  I  suppose  I  must  have  glanced  at  scores  of  these  reports; 
certainly  I  handled  three  big  bundles  of  them,  and  I  saw  nothing  else  except 
an  excellent  verdict.  Therefore,  what  I  saw  of  the  workmen  before  the  Board 
did  not  strike  me  as  theatrical  or  sentimental.  I  knew  that  this  scheme  worked. 
I  knew  that  the  Board  has  solved  one  of  the  great  difficulties  in  getting  munitions. 
And  what  I  saw  that  night  confirmed  in  me  the  strong  conviction  that  the  way 
to  rule  workmen  is  through  and  by  workmen — not  foremen,  not  superintendents, 
not  managers,  not  employers,  but  working  workmen. 

(Reprinted  from  the  Daily  Chronicle  by  the  kind  permission  of  Mr.  Harold 
Begbie  and  the  Editor.) 


241 


i 


Appendix  VII 


PROVISIONS  FOR  WORKS  COMMITTEES  IN  THE  AWARDS 

OF  THE  NATIONAL  WAR  LABOR  BOARD  AND 

MEMORANDUM  WITH  REGARD  TO 

PROCEDURE  IN  ELECTIONS 


Employees  v.  American  Locomotive  Company,  Schenectady,  N.  Y.,  Docket  No. 
6i;  Mason  Machine  Works,  Taunton,  Mass.,  Docket  No.  iii,  October  9,  J918; 
St.  Louis  Car  Company,  St.  Louis,  Mo.,  Docket  No.  4-A,  October  11,  1918. 

For  the  purpose  of  securing  the  equitable  application  of  Section  I  (con- 
cerning working  hours  and  overtime)  and  adjusting  all  differences  which  may- 
arise  between  the  management  and  the  workers  in  regard  to  its  operation,  a 
permanent  committee  of  four  persons  is  hereby  created,  two  of  whom  shall 
be  designated  by  the  management  of  the  plant  and  two  by  the  workers,  the 
decision  of  any  three  of  whom  shall  be  binding.  In  the  event  of  failure  of  the 
committee  to  reach  an  agreement  the  case  may  be  referred  to  the  Examiner 
of  the  National  War  Labor  Board,  whose  decision  shall  be  binding,  except 
that  either  party  may  appeal  to  the  National  War  Labor  Board  pending  the 
ajudication  of  which  appeal  the  decision  of  the  examiner  shall  be  in  force 
and  effect. 

Machinists  and  Electrical  Workers  and  Other  Employees  vs.  The  Bethlehem 
Steel  Company,  Bethlehem,  Pa.,  Docket  No.  22,  July  31,  igi8. 

The  right  of  employees  to  bargain  collectively  is  recognized  by  the  National 
War  Labor  Board;  therefore  the  employees  of  the  Bethlehem  plant  should  be 
guaranteed  this  right.  The  workers  of  the  Bethlehem  plant  should  use  the 
same  method  of  electing  committees  as  is  provided  in  the  award  of  the  National 
War  Labor  Board  for  the  workers  of  the  General  Electric  Company  at  Pittsfield, 
Mass. 

Employees  t.  The  General  Electric  Company,  Pittsfield  Works,  Docket  No.  19, 
July  SI,  1918. 

The  election  by  the  workers  of  their  representative  department  committees 
to  present  grievances  and  to  mediate  with  the  company  shall  be  held  during 
the  life  of  this  award  in  some  convenient  public  building  in  the  neighborhood 
of  the  plant,  to  be  selected  by  the  examiner  of  this  board  assigned  to  supervise 
the  execution  of  this  award,  or  in  the  case  of  his  absence,  by  some  impartial 
person,  to  be  selected  by  such  examiner.  Such  examiner  or  his  substitute  shall 
preside  over  the  first  and  all  subsequent  meetings  during  the  life  of  this  award, 
and  have  the  power  to  make  the  proper  regulations  to  secure  absolute  fairness. 

In  the  elections  the  examiner  shall  provide  whenever  practicable  for  the 
minority  representation  by  limiting  the  right  of  each  voter  to  a  vote  for  less 
than  the  total  number  of  the  committee  to  be  selected.  Elections  shall  be  held 
annually. 

242 


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*> 


Employees  v.  Employers  in  Munition  and  Related  Trades,  Bridgeport^  Conn. 
Docket  No.  132,  August  26,  1918. 

The  right  of  employees  to  bargain  collectively  is  recognized  by  the  National 
War  Labor  Board;  therefore,  the  employees  in  the  plants  shall  be  guaranteed 
this  right. 

Employees  v.  Corn  Products  Refining  Company,  Docket  No.  130,  November  21, 
19 18. 

Committees  consisting  of  three  employees  from  each  department  shall  be 
elected  by  secret  ballot  in  such  manner  and  place  and  under  such  conditions 
as  the  employees  may  determine  without  influence  or  interference  by  the  com- 
pany or  any  of  its  superintendents  or  foremen,  which  committees  after  their 
election  shall  represent  and  be  responsible  to  the  employees  of  such  departments 
in  the  presentation  and  adjustment  of  any  grievances  as  to  hours,  wages,  or 
working  conditions. 

Such  grievances  as  may  arise  shall  first  be  presented  for  adjustment  to  the 
head  of  the  department  involved  by  the  departmental  committee  concerned.  If 
within  five  days  thereafter  the  dispute  is  not  adjusted,  the  departmental  com- 
mittee may  refer  the  matter  in  dispute  to  a  general  plant  committee  to  consist 
of  five  employees  elected  by  the  members  of  the  departmental  committees,  to 
be  taken  up  by  the  general  plant  committee  with  a  like  committee  of  the  com- 
pany or  other  of  the  company's  representatives  for  the  purpose  of  bringing 
about  a  settlement.  In  the  event  that  the  general  plant  committee  fails  to  bring 
about  an  agreement  on  disputed  questions,  the  matter  in  dispute  may  be  referred 
to  the  National  War  Labor  Board  or  to  such  other  agency  as  the  company  or 
its  representatives  and  the  general  plant  committee  may  agree  upon. 

General  Electric  Company,  Lynn,  Mass.,  Docket  No.  231,  October  24,  1918. 

In  the  case  of  the  employees  v.  the  General  Electric  Company,  Mass.,  the 
National  War  Labor  Board  orders : 

(a)  There  shall  be  forthwith  shop  committees  in  conformity  with  a  plan 
approved  by  the  Board. 

{b)  That  the  secretary  of  the  National  War  Labor  Board  shall  appoint  an 
examiner  who   shall   supervise  and   conduct   these  elections. 

{c)  That  a  general  committee  shall  be  created,  consisting  of  three  members 
to  represent  the  workers  and  three  to  represent  the  employers.  The  members 
of  the  general  committee  representing  the  workers  shall  be  selected  by  the 
members  of  the  shop  committee  acting  jointly,  under  supervision  of  the  examiner. 

{d)  That  the  employers  shall  forthwith  select  their  represenattives  to  meet 
with  the  representatives  of  the  workers  on  the  shop  committee  and  the  general 
committee. 

Employees  v.  Jackson  and  Church  Company,  Wilcox  Motor  and  Manufacturing 
Company,  Stork  Motor  Works,  Garde  Stamping  and  Tool  Company,  Jack- 
son-Church-Wilcox  Company,  Nelson  Brothers  Company,  National  Engi- 
neering Company,  Werner  and  Pfleiderer  Company,  Lufkin  Rule  Company, 
Wickes  Brothers,  and  American  Cash  Register  Company,  all  of  Saginaw, 
Michigan,  Docket  No.  147,  October  25,  1918. 

As  the  right  of  workers  to  bargain  collectively  through  committees  is 
recognized  by  the  board,  the  companies  shall  recognize  and  deal  with  such 
committees  after  they  have  been  constituted  by  the  employees. 

The  election  of  committees  shall  be  held  in  the  places  where  the  largest 
total  vote  of  the  men  can  be  secured  consistent  with  fairness  of  count  and  full 

243 


and   free  expression   of   choice,   either   in  the   shop   or   some  convenient  public 
building,  as  the  parties  themselves  shall  agree  upon. 

The  committees  above  provided  shall  meet  with  the  management  to  establish 
such  classifications  and  minimum  rates  of  pay  as  may  seem  to  them  necessary. 

Employees  z'.  Manufacturers  of  Newsprint  Paper,  Docket  No.  55,  July  20,  igi8. 

It  is  recommended  that  a  committee  of  five  (5)  representing  the  employers 
and  a  committee  of  five  (5)  representing  the  employees  be  formed  by  the 
respective  groups,  which  joint  committee  shall  make  careful  investigation  and 
study  in  the  industry  and  endeavor  to. submit  a  uniform  classification  of  em- 
ployees, to  establish  proper  wage  differential  among  the  various  classes  and 
the  various  grades  in  each  class,  and  to  formulate  a  schedule  of  working  con- 
ditions that  can  be  adopted  by  all  the  mills,  with  a  view  of  establishing  uniform 
classification,  working  conditions,  and  wage  schedules  throughout  the  industry. 
These  committees  should  be  appointed  at  once  and  endeavor  to  reach  a  con- 
clusion and  report  within  six   (6)    months  from  July  1,   1918. 

Employees  v.  National  Refining  Company,  Coffeyz'ille,  Kansas,  Docket  No.  gy, 
August  28,  19 18. 

As  the  right  of  workers  to  bargain  collectively  through  committees  has 
been  recognized  by  the  Board,  the  company  shall  recognize  and  deal  with  such 
committees  after  they  have  been  constituted  by  the  employees. 

Employees  v.  New  York  Central  Iron  Works  Co.,  Inc.,  Hagerstown,  Md.,  Docket 
No.  2gy,  September  26,  igi8. 

A  committee  of  five  shall  be  chosen  by  the  workers,  by  secret  ballot  at  an 
election  to  be  held  and  supervised  by  the  committee  of  five  workers  signing 
this  agreement  and  the  general  manager  and  the  superintendent  of  the  plant. 
If  any  individual  worker  is  unable  to  settle  a  point  of  difference  with  the 
superintendent,  the  worker  shall  have  the  right  to  present  such  point  of 
difference  directly  to  the  general  manager  or  through  the  committee  of  five  to 
be  so  elected.  Should  any  worker  on  the  committee  cease  to  be  employed  at 
the  plant,  his  place  on  the  committee  shall  automatically  become  vacant  and 
shall  be  filled  in  the  manner  prescribed  for  the  election  of  the  committee. 

Employees  v.  Smith  and  JVesson  Co.,  Springfield,  Mass.,  Docket  No.  2^3,  August 
21,  1918. 

(a)  Election  of  Committees. — The  election  by  the  workers  of  their  repre- 
sentative department  committees  to  present  grievances  and  mediate  with  the 
company  shall  be  held,  during  the  life  of  this  award,  in  some  convenient  public 
building  in  the  neighborhood  of  the  plant,  to  be  selected  by  the  examiner  of 
this  board  assigned  to  supervise  the  execution  of  this  award,  or,  in  case  of  his 
absence,  by  some  impartial  person,  a  resident  of  Springfield,  Mass.,  to  be 
selected  by  such  examiner.  Such  examiner,  or  his  substitute,  shall  preside  over 
the  first  and  all  subsequent  elections  during  the  life  of  this  award,  and  have 
the  power  to  make  the  proper  regulations  to  secure  absolute  fairness. 

In  the  elections  the  examiner  shall  provide,  wherever  practicable,  for  the 
minority  representation  by  limiting  the  right  of  each  voter  to  a  vote  for  less 
than  the  total  number  of  the  committee  to  be  selected.  Elections  shall  be 
held  annually. 

{b)  Duties  of  Department  Committees. — The  duties  of  the  department  com- 
mittees shall  be  confined  to  the  adjustment  of  disputes  which  the  shop  foremen 
and  the  division  superintendents  and  the  employees  have  been  unable  to  adjust. 

244 


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M 


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The  department  committees  shall  meet  annually  and  shall  select  from 
among  their  number  three  (3)  employees  who  shall  be  known  as  the  Committee 
on  Appeals.  This  committee  shall  meet  with  the  management  for  the  purpose 
of  adjusting  disputes  which  the  department  committees  have  failed  to  adjust. 

Employees  v.  Southern  California  Iron  and  Steel  Company,  Los  Angeles,  Cal., 

Docket  No.  94,  October  23,  1918. 

As  the  right  of  the  workers  to  bargain  collectively  through  committees  has 
been  recognized  by  the  Board,  the  company  shall  recognize  and  deal  with  such 
committees  after  they  have  been  constituted  by  the  employees. 

All  questions  in  dispute  shall  be  taken  up  for  adjustment  with  the  manage- 
ment and  the  committees  herein  provided  for. 

Employees  v.  Standard  Wheel  Company,  Terre  Hcmte,  Ind.,  Docket  No.  176, 

October  25,  1918. 

As  the  right  of  workers  to  bargain  collectively  through  committees  has 
been  recognized  by  the  Board,  the  company  shall  recognize  and  deal  with  such 
committees,  at  least  one  member  of  which  shall  be  a  woman,  after  they  have 
been  constituted  by  the  employees  under  the  supervision  of  an  examiner  of  the 
National  War  Labor  Board  and  by  a  method  of  election  prescribed  by  the  Board. 

Employees  v.  Virginia  Bridge  and  Iron  Company,  Roanoke,  Va.,  Docket  No.  47, 
October  24,  1918. 

In  the  case  of  Employees  versus  the  Virginia  Bridge  and  Iron  Co.,  Roanoke, 
Virginia,  the  board  finds  that  the  case  is  one  in  which  such  controversies  as 
exist,  if  any,  should  be  settled  through  committees  representing  the  men  and 
the  company  in  accord  with  the  principles  of  the  Board  relating  to  collective 
bargaining. 

The  Board,  therefore,  directs  that  such  committees  should  be  forthwith 
selected   for  this  purpose. 

In  the  event  that  the  committees  may  fail  to  agree  with  the  company  in 
matters  in  controversy,  such  matters  may  then  be  brought  to  this  Board  for 
adjustment,  consideration  and  decision. 

NATIONAL  WAR  LABOR  BOARD,  Washington. 

Procedure 

ELECTIONS  OF  SHOP  COMMITTEES 

In  cases  where  elections  are  required  to  be  held  for  the  purpose  of  selecting 
shop  committees,  the  following  shall  be  the  procedure: 

1.     Number  of  Committeemen 

Shop  committees  shall  be  selected  to  meet  with  an  equal  or  a  lesser  number 
'of  representatives  to  be  selected  by  the  employer.  Each  department  or  section 
of  the  shop  shall  be  entitled  to  one  committeeman  for  each  one  hundred  em- 
ployees employed  in  the  department  or  section.  If  in  any  department  or  section 
there  shall  be  employees  in  excess  of  any  even  hundred,  than  an  additional 
committeeman  may  be  elected  provided  the  additional  employees  beyond  the 
even  hundred  shall  be  fifty  or  more;  if  less  than  fifty,  no  additional  representa- 
tion shall  be  allowed.  As  an  example :  In  a  department  or  section  employing 
330  men,  three  committeemen  will  be  elected ;  in  a  department  employing  375 
men,  four  committeemen  will  be  elected. 

245 


2.  Nominations 
Due  notice  having  been  given  of  an  election,  10  days  shall  be  allowed  ,during 
which  nominations  may  be  made  for  candidates.  In  order  that  a  candidate's 
name  may  appear  on  the  ballot,  such  person  must  be  nominated  either  at  a 
meeting  of  the  employees  or  any  part  of  them  duly  called  for  that  purpose,  or 
by  petition  signed  by  not  less  than  10  per  cent  of  those  qualified  to  vote  for 
any  candidate  so  nominated. 

a.  By  Conz'cntion.— Meetings  for  nomination  of  candidates  may  be  held  at 
any  places  named  in  the  calls  for  the  same.  The  nominations  and  the  attendance 
of  at  least  10  per  cent  of  the  persons  entitled  to  vote  for  nominees  at  any  such 
meeting  must  be  certified  to  by  the  chairman  and  secretary  of  the  meeting. 

b.  By  Petition.— AW  nominating  petitions  must  clearly  name  the  candidate 
or  candidates  and  have  the  signature  of  not  less  than  10  per  cent  of  the  bona 
fide  employees   qualified  to  vote   for  such  candidate. 

c.  filing  Nominations.— 'Nominations  made  either  by  meeting  or  by  petition 
must  be  sent  to  the  examiner  of  the  National  War  Labor  Board  not  later  than 
10  days  after  the  notice  of  election  is  given,  and  the  election  shall  be  held  on 
the  fifth  day  next  succeeding  unless  such  day  should  be  Saturday  or  Sunday 
or  a  holiday,  in  which  event  the  election  shall  be  held  on  the  next  successive 
work  day. 

d.  Publishing  Lists  of  Nominecs.—Usts  of  candidates  selected  by  con- 
vention or  petition  and  distinctively  designated,  may  be  posted  by  their  respective 
supporters  on  a  bulletin  board  to  be  provided  by  the  employer,  convenient  to 
the  voting  booths,  to  assist  voters  in  marking  their  ballots. 

3.     Elections 

a.  Place.— The  election  shall  be  held  in  the  place  where  the  largest  total 
vote  of  the  men  can  be  secured,  consistent  with  fairness  of  count  and  full  and 
free  expression  of  choice,  either  in  the  shop  or  in  some  convenient  public 
building,  as  the  chief  examiner  shall  decide  after  conference,  if  need  be,  with 
the   Secretary  of  the   National   War  Labor  Board. 

b.  Election  Officers.— The  election  shall  be  conducted  under  the  supervision 
of  an  examiner  of  the  National  War  Labor  Board,  who  shall  select  as  assistants 
two  or  more  employees  of  the  department  or  section  for  which  the  election  is 
held.  These  persons  shall  constitute  the  Election  Board,  which  will  conduct 
the  election,  count  the  votes,  and  certify  as  to  the  correctness  of  the  count. 

An  employee  of  the  company  to  be  nominated  by  the  employer,  who  shall 
preferably  be  the  timekeeper  or  someone  connected  with  the  proper  department 
or  section,  who  is  qualified  to  certify  to  and  identify  the  voters  as  bona  fide 
employees,  shall  assist  the  election  board  in  its  duties. 

c.  Freedom  from  Undue  Influence.— AW  elections  shall  be  held  in  accordance 
with  the  Australian  or  secret  ballot.  The  names  of  all  the  nominees  shall  be 
printed  in  alphabetical  order  on  the  ballot,  which  shall  clearly  state  the  number 
to  be  voted  for.  This  ballot  shall  be  in  the  form  that  it  may  be  folded  so  as 
to  conceal  the  nature  of  the  vote.  Each  employee  presenting  himself  shall  be 
certified  to  as  qualified  to  vote  and  handed  a  ballot  by  the  tellers.  Upon  indi- 
cating upon  the  ballot  by  marking  a  cross  opposite  the  names  of  the  candidates 
for  whom  the  employee  wishes  to  vote,  he  shall  himself  place  it  in  the  ballot 
box.  A  booth  or  booths  shall  be  provided  where  the  employee  may  injdicate 
his  choice  free  from  observation. 

246 


V 


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t  m^ 


Foremen  and  other  officials  of  the  company  shall  absent  themselves  from 
the  election  to  remove  ground  for  a  claim  of  undue  influence. 

d.  Declaration  of  Election.— The  candidates  receiving  the  greatest  number 
of  votes  shall  be  declared  elected  by  the  election  board.  In  the  event  of  a  tie 
vote,  the  examiner  of  the  National  War  Labor  Board  shall  call  for  a  new 
election  within  five  days. 

4.    Change  of  Procedure  by  Agreement 

After  the  initial  election  under  the  supervision  of  the  examiner  of  the 
National  War  Labor  Board,  subsequent  elections  and  any  general  rules  or  regu- 
lations pertaining  to  the  selection  of  Shop  Committees  may  be  carried  out 
through  agreement  between  the  employer  and  the  committee  so  elected.  Proper 
provision  should  be  made  for  reports  of  the  Shop  Committees  from  time  to 
time  to  their  respective  constituencies. 

Approved  by  the  Joint  Chairmen,  October  4,  1918. 

This  election  plan  is  so  worded  as  to  provide  for  both  a  General  Works 
Committee,  representing  the  employers  of  the  entire  establishment,  such  as 
might  meet  annually  or  on  special  occasions,  and  also,  for  department  com- 
mittees (which  is  the  sense  in  which  the  term  "Shop  Committee"  is  ordinarily 
used).  These  latter  committees  are  the  agencies  by  which  the  employees  of 
the  several  departments,  or  sections  of  the  works,  take  up  in  the  first  instance 
the  various  problems  requiring  adjustment  with  the  management. 

The  General  Works  Committee  is  composed  of  the  several  shop  committees 
representing  the  departments  and  sections  of  the  plant.  Thus,  a  single  election 
in  a  department  provides  both  a  shop  committee  as  such,  and  a  portion  of  the 
Works  Committee,  which  will  be  formed  by  the  coming  together  of  all  the 
various   shop   committees. 

Long  experience  has  shown  that  committees  of  three  are  usually  more 
effective  than  either  larger  or  sm.aller  ones.  In  order  to  insure  workable  com- 
mittees of  not  less  than  three  or  more  than  five,  examiners  can  either  sub- 
divide a  plant  into  sections  of  not  less  than  two  hundred  and  fifty  nor  more 
than  five  hundred  and  fifty  employees,  thus  securing  committees  of  suitable 
size  at  once,  or  under  some  circumstances  they  may  find  it  better  to  permit  a 
somewhat  larger  section  of  the  plant  to  elect  committeemen  and  then  to  see 
that  the  committee  resulting  reduces  itself  to  manageable  proportions  by  subse- 
quent election  among  its  own  number. 

Before  giving  notice  of  any  election  under  an  award  of  the  Board,  the 
administrative  examiner  in  charge  shall  submit  in  writing  to  the  undersigned 
an  election  schedule,  on  which  the  place  of  the  election  shall  be  stated,  as  well 
as  the  several  subdivisions  of  the  plant  by  which  shop  committees  are  to  be 
chosen. 

The  number  of  employees  in  each  department  or  section  of  the  plant  shall 
be  shown,  the  representation  allowed  upon  the  committee,  and  the  time  proposed 
for  the  election. 

The  place  of  the  election  and  other  details  will  be  approved  by  the  chief 
administrative  examiner,  as  required  in  paragraph  3,  section  A,  of  the  official 
election   plan. —  (Memorandum   by   Administrator   of  Awards.) 

247 


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ft 


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|The  development  of  government  in  industry,"  by  Earl  Dean  Howard. 
"A  new  field  for  systematic  justice,"  by  John  H.  Wigmore. 
"Making  piece-work  rates  under  Hart  Schaffner  &  Marx  agreement " 
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251 


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Hoxie,  R.  F. — Scientific  management  and  labor.     New  York,  1915. 
Trade  unionism  in  the  United  States.     New  York,  1916. 

Industrial  councils  and  trade  boards  in  Great  Britain.    U.  S.  Bureau  of  Labor 
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Contains:     (1)    a    catalogue   of    the    reports,    etc.    issued    by    the    Whitley 
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Industrial  self-government.     U.  S.  Bureau  of  Labor  Statistics,  Monthly  Labor 
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Industrial  unrest.    Debate  in  the  House  of  Lords.    London  Times,  Nov.  8,  1917. 

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(P'ormation  of  a  joint  council  in  the  pottery  industry.) 

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See  Chap.  2.     "Industrial  unrest,"  pp.  20-55. 

Labor  adjustment  and  payment  of  bonuses  at  coal  mines.    U.  S.  Bureau  of  Labor 
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Camp  sanitation  survey,  with  recommendations  for  the  lumber  industry  of 

the  Pacific  Northwest.  Portland,  Heaquarters  Spruce  Production  Division, 
Loyal  Legion  of  Loggers  and  Lumbermen,  June  1,  1918. 

252 


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%i* 


Carrying  cheer  to  the  logging  camps  [by  D.  K.  Laurie.]     American  Lwuber- 

men,  Sept.  14,  1918,  p.  49. 
Legion  conference  fixes  wage  scale.     American  Lumberman,  Sept.  7,  1918, 

p.  41. 
Meeting   foreshadows   permanent   labor   harmony.     American  Lumberman, 

Aug.  17,  1918,  p.  55. 

Marot,  Helen — Creative  impulse  in  industry.     New  York,  1918. 

Reconstruction  at  work.    Dial,  Oct.  19,  1918,  pp.  303-305. 

National  War  Labor  Board — Awards  and  findings.     Washington,   1918. 

Instructions  to  examiners  assigned  to  administer  awards.     Mimeographed, 

Oct.  4,  1918. 
Operations  of  works   committees   in   Great  Britain.     U.    S.   Bureau   of   Labor 

Statistics,  Monthly  Labor  Review,  Aug.,  1918,  pp.  81-84. 

(A   review   of   the   Ministry   of   Labor's   report   on   an   inquiry   on   works 

committees.) 
Parker,   Carleton  H. — Motives   in   economic   life.     American  Economic  Review 

Supplement,  March,  1918. 
Progress   in   the   establishment   of   joint   industrial    councils    in    Great   Britain. 

U.  S.  Bureau  of  Labor  Statistics,  Monthly  Labor  Review,  Aug.,  1918,  pp. 

80,  81. 
Proposed   joint   standing  industrial   councils   in   Great   Britain.     U.    S.    Bureau 

of  Labor  Statistics,  Monthly  Review,  Sept.,  1917,  pp.  130-132. 

(Review  of  the  Whitley  Interim  Report.) 

Reconstruction  of  industry.  Report  prepared  after  a  series  of  conferences  of 
Plymouth  and  Cornish  citizens  who  were  also  employers  and  trade-unionists, 
held  at  Plymouth  in  March  and  April,  1918.  Also  rules  of  the  Devon  and 
Cornwall  Association  for  Industrial  and  Commercial  Reconstruction.  Lon- 
don,  1918. 

Noted  in  the  U.  S.  Bureau  of  Labor  Statistics,  Monthly  Labor  Review, 
Oct.,  1918,  pp.  51-54. 

Reed,  John — Structure  of  the  Soviet.     Liberator,  Nov.,  1918,  pp.  32-38. 

Renold,  C.  G. — Workshop  committees :  suggested  lines  of  development.  In 
Kirklady,  A.  W.,  Ed. — Industry  and  finance.  London,  1917,  pp.  160-186. 
Reprinted  in  condensed  form  in  the  Survey  Supplement  (Reconstruction 
Series,  No.   1),  Oct.  5,  1918. 

Reorganization  of  industry  in  great  Britain.  U.  S.  Bureau  of  Labor  Statistics, 
Monthly  Review,  Aug.,   1917,  pp.   129-138. 

(Review  and  digest  of  The  reorganization  of  industry,  an  account  of  pro- 
ceedings at  the  conference  of  working  class  associations  held  in  Oxford 
July  21-23,  1916.     3rd  edition,  London,  1916.) 

Rockefeller,    John    D.,    Jr. — Brotherhood    of    men    and    nations.      An    address 
delivered   before    the    Civic    and    Commercial    Club    of    Denver,    Colorado, 
June   13,   1918. 
(Contains  an  outline  of  the  Colorado  Fuel  and  Iron  Co.  plan.) 

Labor  and  capital — partners.    Atlantic  Monthly,  Jan.,  1916,  pp.  12-21. 

Sheldon,  Ellsworth — An  industrial  democracy.  American  Machinist,  Aug.  1, 
1918. 

Shipbuilding  Labor  Adjustment  Board — Decision  as  to  wages,  hours,  and  other 
conditions  in  Atlantic  Coast,  Gulf,  and  Great  Lakes  shipyards.  Washington, 
Shipbuilding  Labor   Adjustment   Board,   Oct.    1,    1918. 

253 


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Decision  as  to  wages,  hours,  and  other  conditions  in  Pacific  Coast  ship- 
yards.    Washington,   Shipbuilding   Labor   Adjustment   Board,   Oct.   1,    1918. 

Sprague,  O.  AL  W. — Relations  between  capital  and  labor  and  reconstruction. 
American  Economic  Review,  Dec,  1918,  pp.  763-773. 

Sparkes,  Malcolm— Memorandum  on  self-government  in  industry,  together  with 
a  draft  for  a  builders'  national  industrial  parliament.     London,  1918. 
Reviewed  in  the  U.  S.  Bureau  of  Labor  Statistics,  Monthly  Labor  Review, 
Oct.,  1918,  pp.  54-61. 

Summary  of  reports  of  the  Whitley  Committee.  British  Labor  Gazette,  Sept., 
1918. 

Summary  of  some  of  the  conclusions  reached  by  a  group  of  twenty  British 
Quaker  employers  after  four  days  of  discussion  in  1917  and  1918.  Survey, 
(Reconstruction   Series,   No.  2.),   Nov.  23,   1918. 

Tead,  Ordway— Instinct  in  industry.     New  York,  1918. 

United  States  Department  of  Labor  Library— Reconstruction,  a  preliminary 
bibliography.      [Compiled  by   Laura  A.   Thompson.]      Mimeographed,    1918. 

Veblen,  Thorstein— Instinct  of  workmanship.     New  York,  1918. 

Verity,   George  M.— Why  we  have  no  trouble   with  our  men.     System,   May, 

1918,   pp.  707-710. 

(Author  is  president  of  the  American  Rolling  Mills  Co.) 

Wallace,  Graham— The  great  society.     New  York,  1914. 

Webb,  Sidney — Restoration  of  trade  union  conditions.  London  and  New  York, 
1917. 

Western  Efficiency  Society— Human  factor  in  industrial  preparedness.  Com- 
plete report  of  the  proceedings  of  the  national  conference,  Chicago,  May 
23  to  25.  1918. 

(Papers  by  Harrington  Emerson,  John  P.  Fray,  Frank  B.  Gilbreth,  Charles 
R.  Van  Hise,  and  others. 

Whitley,  J.  H.— The  Whitley  report,— summary  of  an  address  on  the  broad 
principles  underlying  the  report,  made  at  Sheffield,  in  Oct.,  1918.  Local 
Government  Chronicle,  Oct.  12.  1918,  p.  594. 

Willetts,  J.  H.— Arbitration  plan  of  William  Filene's  Sons  Co.  Annals  of  the 
American  Academy  of  Political  and  Social  Science,  Vol.  69,  1917,  pp.  205-207. 

Wolf,  R.  B. — The  creative  worker,— an  address  delivered  before  the  Technical 

Association  of  the   Pulp  and   Paper   Industry   at  the   spring  meeting,  held 

at  Dayton,  Ohio,  May  16,  1918. 

Technical  Association  of  the  Pulp  and  Paper  Industry,  New  York,  1918. 
Individuality  in  industry.     U.  S.  Bureau  of  Labor  Statistics,  Bulletin  No. 

227,  Oct.,  1917,  pp.  193-206. 

Works  committees.     Times  Engineering  Supplement,  June,  1918. 

(Report  of  the  British  committees  of  managers  and  workmen.) 

Works  committees  as  part  of  the  industrial  council  plan  of  Great  Britain. 
U.  S.  Bureau  of  Labor  Statistics,  Monthly  Review,  June,  1918,  pp.  163-165. 
(Reprints  the  Supplementary  report  on  works  committee  in  full.) 

Works  committees  in  Germany.     British  Labor  Gazette.  May,   1918. 


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